Some people buy properties for investment purposes and give them out to renters. This makes a nice secondary income aside from having the security of owning immovable property. But when you are planning on giving out your property for rent, you need to be aware of the number of things you will need to get through first. And all this is aside from marketing the property and finding the right tenant. There is some legal paperwork also involved aside from the apartment’s maintenance, keeping tabs on damages and misuse and ensuring timely rent payments.
Here’s a breakdown of the checklist you need to follow to smoothen the road towards giving out your property for rent without hassles.
Renovate And Clean-Up
It’s the landlords’ duty to provide a clean, tidy and secure property to the renters. A fresh lick of paint and ensuring that nothing is damaged or broken will get you better rent offers too. You should also check that electrical and plumbing points are in full working order and there are no associated bills pending.
You will need to fix specific rent for the apartment. Do a brief survey to get an idea of what the going rate is for homes similar to yours. If are planning on fixing the rent a little higher than the going rate, then you should throw in some perks like furnishing, extra security or home automation features.
With everything going digital these days, it’s easier to advertise online for your rental property. There are a number of reliable websites where potential renters search for authentic deals and where you can easily post your property with a few photos. The traditional newspaper is also always there and still works for advertisers.
You will need to create a legal document for the rental agreement that will need to be signed to become binding on both the leaser and the lessee. Signing a legally binding contract will ensure that there are no hassles along the way. This document should also state that the said property shouldn’t be used for commercial activities.
It’s common practice to collect 2 to 3 months advance rent from the tenants. This security deposit becomes useful in case of default on rent payment. This method is also used to cover any damages to the property by the tenant. It’s also a common practice to increase the rent on an annual basis.
This checklist should hopefully set you on the path of becoming a successful landlord.