You own multiple properties that are not being used. You don't wish to sell them, but you can't even bear the fact that they are just lying there. The solution to all your woes? Put the property up for rent. Whether it is a residential area or a commercial space, you need to first take into consideration certain factors. Right from making the property appear attractive and presentable, to effective advertising, it all matters. The tips discussed in this article should help you get the best price for your property and value for your money, too.
Do Some Math
Calculate your earning potential and your expenses, as well. Subtract your expenses like house taxes, electricity bill, water taxes from the rent that you get so that you're able to know whether it is a profitable business or not. Gather as much information from local property dealers and mediators as you can about rent rates in the area of your house location.
Ideally, you should contact an agent who will help you set up the right value for your property and bring in the right kind of tenants. The agent will charge a fee for his/her services. It is always a wise decision to choose a reputed firm. A group of agents who run a small firm but have been in this business for a longer period, are always a better choice. They will also help you prepare a suitable lease agreement that lists down all the conditions. This is an extremely important decision, as it could affect your business right from the start through to the end.
Lender is Important
So you thought it was not necessary for you to inform your mortgage lender that you are giving the property in question for rent? Well, you thought wrong. It is important to inform your mortgage lender because without doing so, you may risk inviting legal action from them. Moreover, always remember that your mortgage lender has the right to deny you the permission to give that property on rent. Hence, ask for a written permission from them politely. Explain to them your reasons to give the property on rent. The lender is not supposed to force you to deal at a higher price or give the property up within one or two years. They can and may charge a nominal fee for granting you the permission.
If everything else has been placed in order but your tenant is someone who is notorious, you may have to bear the brunt of all kinds of complains, damages, or problems. It is important to know everything about your tenant, about his credit history records, and if he or she has some pending police cases against him or her. You don't want to get in trouble by allowing such kind of tenants on your property. Clear all your doubts and suspicions before you decide to hand over the property to them. You could use the help of your friends and relatives to find reliable, responsible, and trustworthy tenants. If the tenants are young, don't check up on their records, as they don't have enough work experience to make a good credit history. Tenants may use an apartment search checklist to check up on the property. So ensure there are no faults, leakages, or under-constructed areas that need attention. If there are, fix them immediately. Make your house ready for a presentation and only then call the tenants over.
Put up ads about your property in the local newspaper, classifieds, and on the Internet. Don't forget to give a brief description about your house, its features, price range (negotiable), and expected tenants (students, professionals, bachelor's, married etc.). You can also publicize your property by word of mouth. This often can turn out to be the best way to rent your house and that too, to excellent tenants.
Other things that shouldn't be overlooked are the possessions that your tenant will bring in the house. You must inform them beforehand whether pets are allowed or not on your property. Being a landlord not only entitles you to earn rent from the property, but also requires you to fulfill certain responsibilities. Some of them include maintaining basic sanitation and property maintenance and finding tenants who will not only give you money, but will also take care of your property.