There is a Chinese proverb, saying, you can start a business easily, but managing a business is very difficult. Invest in rental property is kind of business as well. Managing your own rental properties can be a challenging venture requiring patience and the right expectations.
In order to bring yourself a massive wealth from rental property investment, you must learn to avoid the existing pitfalls so that you can minimize the troublesome and maximize your profit. Here are 4 things that you should be concern about before rent out your property to the tenants.
1. Do you willing to spent your time and money to manage it?
If you put this business as your second source of income, you should give yourself some time to manage your rental property as well as do the maintenance because the longer you skip the maintenance, the worse the problem may appear and the higher the cost to fix it. We advice you to draw out a schedule that which day you should go over to take a look of your rental property and check with your tenants whether there is anything that need to be fixed. Or if you simply have no time as you’re busy with your full time job, you may consider to hire a property manager to manage the rental property for you.
On the other hand, if you are retirees, you may have nothing but time and ownership of a rental property is just what you need to keep yourself active, both mentally and physically.
2. Check on the fair market rent
Have you ever ask yourself that what determines the rent you should charge for your properties? Of course you can’t simply decide the rents whatever you like! You can only determines the rents of your property after checked the rents of similar properties in the area. Do take note that don’t compare with the brand new building as it may demand a higher rents than your old property.
3. Interview the prospective tenant
You should conduct an interview session with prospective tenant during visitation, otherwise, make sure that at least you have acquire the following information
➟ Full name and present living address;
➟ Contact number of present or previous landlord (if necessary)
➟ Age and marital status;
➟ Current occupation
If the tenants show interest in your property, do tell them the rules and regulations that you have set earlier, such as no pets allow, no nailed knocked into the wall or etc.
4. Your rental property is furnished, partially-furnished or unfurnished
Furnished apartments and houses are usually can demand for higher rents. If your property is located in an area where furnished units are highly sought, do furnish yours as well to meet the minimum requirements. However, don’t over-improve your property as it can affect your ROI.
See? There is a lot of works that you need to do on your rental property, don’t ever think that you buy it, rent it out and collect the rents, that’s all. In facts, you should always check on your property status as well as build certain relationships with your tenant as they might help you to take care of your property. (Click here to read Guides To Build A Good Landlord-Tenant Relationship).