5 Top Tips For Rental Property Owners
One of the best investments that you can make is to purchase property and rent it out to tenants.
Whether you aim it at holidaymakers or at permanent tenants, you are likely to make a profit at the end of the month. However, it is a very daunting venture and not many people are too keen on becoming landlords.
With adequate management, you will be able to reap the rewards of your successes and you can ensure that your tenants have a happy stay with you.
Here are a few tips to consider when renting out your property:
#1 - Turn-around time
The first place where you will lose money is if your unit is standing empty.
One month's lost rent is equal to 8% of your return. Considering that the national average (yearly)yield on a property is 8.6%, it is clear that you stand to lose a chunk right there.
Working with a professional real estate agency will give you access to a great networking base and they will ensure that your rental property gets enough exposure. This will result in a faster turn-around time than trying to find a tenant from scratch on your own.
#2 - Return on investment
Landlords all have one thing in common: they want to achieve the highest possible return on their investment.
The higher the monthly rent, the higher the return will be.
It is important to note here that it is not only the size of your rental unit that will count but also the quality of it. Exposure is also an important aspect of successfully renting.
If you aim your rental unit at foreign nationals and corporates, consider aligning yourself with an estate agency that can promote your rental unit to those types of contacts.
#3 - Quality of tenant
Unfortunately, higher quality rental units also come with higher risk.
This might not always be the case, but it is in your hands to ensure that it rarely happens. Going through the necessary procedures will ensure that you have a committed tenant who will be in it for the long haul.
This process includes strenuous vetting of the applicant as well as verifying their financial records before letting them sign the agreement. This allows you to manage the risk better.
Payment profiles are excellent sources of information and it serves as an indicator to reflect every detail of past payments and financials.
#4 - Employ a rental agent for smoother sailing
As mentioned above, a rental agent will do wonders for the exposure of the unit, but they will also assist in the legal procedures and give you advice on how to manage your property more effectively.
They take care of the daily administrative tasks including the rental income management, maintenance and meeting legislative requirements.
This allows you to focus on your core business and to give attention to other pressing investments without the stress of worrying about your rental unit and the paperwork that goes along with it.
#5 - Putting your best foot forward
Usually, there are many listings for rental units and the ones that are presented best are the ones that will be well received.
It is vital that the pictures you take of your home highlight its best features.
Reputable estate agencies usually have an in-house professional photographer to assist in taking high-quality pictures of your rental unit.
The property should be clean and tidy, inside and out, so that it reflects the true nature of the unit. The photos should also be accurate, for example, if the unit is going to be furnished, take pictures with only the furniture that will be included in the rent.