Property tends to be a reliable investment. It appreciates over time, it’s not likely to be lost or stolen, and if you know what you’re doing, you can extract a respectable income by letting it out. But there’s a right way and a wrong way to maximise your renting income. Let’s consider some tips that might put you on the right track.
Select the right location
Where your properties are located will make an enormous difference to the quality of tenant that you attract. You might also leave yourself vulnerable to seasonable variances if you’re renting a property that’s likely to appeal to tourists. Getting this right depends on the right market research; make sure you’ve done yours.
If your tenants are constantly dissatisfied, then they’ll constantly leave. Every time you have to get new tenants in to replace the old ones, you’re absorbing a whole range of costs. Consequently, it’s essential that you look after the tenants you’ve already got. Deal with their complaints promptly, and make sure that you’re easy to get in contact with. Don’t be greedy when it comes to increasing rent year-on-year; it might be that you inflict more harm than good by doing so.
Specialised insurance for landlords, of the sort provided by Homelet, will provide you with peace of mind in the event that a problem should arise.
When your property is sitting unoccupied, it won’t be earning you any money. Thus, while it’s important to be discerning about the quality of tenant you’re letting in, and the amount of rent you’re charging, it’s still important to let the property out quickly. For the same reason, you should be as flexible and accommodating as possible when you’re looking to let out the property – even if that means working weekends and evenings.
Problem tenants can be difficult to get rid of, and impose a marked strain on your finances and your sanity. The best solution is to avoid bringing them in. To filter them out, you’ll need a screening process. Contact prior landlords and employers for references.
A little bit of paint and a few choice items of furniture can help your property to appeal that much more. This is especially so if you’ve been renting it to the same tenant for years on years. Most landlords opt for bland colours, like magnolia, in order to appeal to the broadest possible cross-section of potential tenants.
Use a written rental agreement
Having a rental agreement down in writing will protect you in the event of a dispute. Even if you know that the tenancy is going to be a short one, it’s worth having the tenant sign a standardised agreement. Do this for every tenant, and you’ll minimise delays when it comes to payment.
Be proactive when it comes to maintenance
If you delay fixing an appliance or repairing a leak, then the problem is only going to get worse. Make sure that boilers are maintained every year, and have a go-to firm who can quickly come in to deal with various kinds of emergencies. If you look after the building, you’ll encourage tenants to do the same thing.