More and more property owners nowadays are opting to become landlords by having their properties rented out. There are a few things to consider, though, before renting out your property to a possible tenant.
Becoming a landlord can be quite a chore. But if you follow a few dos and don’ts the perks could be so much more than an added income to your purse.
As more and more young professionals and those with relatively younger families in urban areas opt to rent than splurge on big tickets item like a down payment on a condominium or a house, the market for residential property rentals, particularly on condominium units and townhouses, is ripe.
Get the right tenant
Your recent investment in that condominium unit could actually pay for the monthly mortgage itself if you get a tenant who actually pays on time and maintains your unit as if he or she owns it. In other words, getting a heaven-sent tenant or a renter who is close to being one is not uncommon. You could bring the odds to your favor by simply doing your share of the homework first.
Set the appropriate price point
Carefully setting the price point for the monthly rental of your place is probably the most important aspect that you’d have to do before you start looking for that ideal tenant. Whether you own a condominium unit, a townhouse, an apartment block, or a house you need to do the math and calculate all the costs involved in maintaining your rental property. That means taking into consideration the costs involved when it comes to utilities, maintenance, and repairs. If you’re still paying for the monthly mortgage of your unit, you need to factor in that, too. And if you plan to have your unit fully furnished—which most tenants these days prefer—you need to take into account that that furniture would most likely need to be repaired or replaced in the long run.
Make sure the property is in tip-top shape
Assuming you’ve finally figured out the price point for your unit’s monthly rental, you’d want to put a premium on it and make sure you get the right kind of tenant. To do so, you need to spruce up your unit and make sure it’s as hassle-free as possible to your would be a renter. Investing in much-needed repairs and renovation will pay off in the long run. Upgrading your unit to an energy efficient abode so it becomes more sustainable might seem expensive at first, but the benefits far outweigh the costs. It’s a win-win situation for both you and the tenant. The demand for rental units that are sustainable and energy efficient has never been higher these days.
Work on your listing
An eye-catching listing can help you attract the best home renters. Make sure it contains all the necessary information a renter might need like amenities, number of rooms, nearby establishments and landmarks, etc. It’s also best to supplement your listing with attractive photos to entice potential renters. Once the inquiries start pouring in, see to it to entertain them as enthusiastically as possible, without letting your guard go.
Consider hiring a property manager
If you’ve already pared down every essential element that’s needed to put your rental property on the market, you might want to consider hiring a property management company to do the work for you. Managing your rental property yourself can be quite stressful and time-consuming. For a minimal fee, a property management firm can take away that stress for you so you could focus on more important matters.
A rental property is undoubtedly a great added source of income, especially if you’re keen on saving money. And like anything else, it takes a whole lot of planning and consideration to really find success in this endeavor. Make sure, too, to consult your local barangay to secure the necessary permits to avoid getting mixed up with the law at some point.