One of the most popular ways of gaining profit from your real estate investing is making these properties available for leasing. This is an effective way of giving purpose to your real estate investments that are not being used currently. As a real estate investor, let’s say you’ve acquired a house and lot property that you are reserving as an investment or for future use of your family or your children’s family, and you don’t want it to be stagnant and not in use for a long time, then, turning it in a rental property as another source of cash flow from a rental income is a nice idea. As real estate investors, if you are planning to enter the world of being a landlord then below are some rental property tips that will help you have a successful property rental business.
Having your first rental property doesn’t need to be stressful; it could be hassle-free if you know what you have to do, what preparations you need to supervise, and if you know how to plan ahead to avoid having conflicts in the future, especially with your tenants.
Rental Property Tips
So, you don’t want to leave your property deserted and uninhabited for a long period of time, and you probably thought – “Hey wait a minute, why don’t I lease it?” Making your property available for rent should have a lot of considerations and organizations so it wouldn’t spawn problems in the future. Since renting out your property is a business, there will always be competition so it is better to prepare your property to be more appealing to possible tenants There are a few key steps to do before your property is ready for rental and occupancy. Listed below are some of the rental properties that you could consider to have a professional relationship with your tenants and to make your property secured and in order at all times.
1. Make a contract.
Our rental income property tip number one is for you to make a contract. Creating a written contract for your agreement with your tenants is better than just having a verbal agreement. It is much more professional and it also serves as evidence or proof of your agreement. Having a contract that is also notarized by a lawyer benefits both the lessor and the tenant. Both the property owner and the tenant should have a copy of the contract that is signed by both parties. The contract should include all the agreed rules and regulations concerning the property being leased, the agreed period of time wherein the property is leased to the tenant, the monthly fee that should be paid by the lessee at a certain date, and other agreements. This would help avoid problems and misunderstandings in the future.
2. Set rules and regulations.
Speaking of rules and regulations, the owner must create a list of rules and regulations that involves activities inside and outside of the property, since most likely the property being rented out is inside a community. Any violations or accidents that happen in the property or in the community that is caused by the tenants could be a liability of the owner because although the property is inhabited by your tenants, the property still belongs to you. Making a set of rules and regulations, that is also included in the contract, would help on keeping both the owner and tenant/s from having conflicts, between each other and with the community the property belongs in.
3. Prepare your property.
As stated above, having a rental business is also a competition between other landlords so, of course, it is necessary to prepare your property for occupancy. You just can’t leave your property to the tenants as it is, there are some steps you need to do in order to make your property more desirable to live in. One step you should do is check the utilities if they’re working properly. This includes checking all lights, water faucets, and fixtures, checking the smoke detectors or CCTVs if they’re in good condition or working properly, and the general cleaning of the entire property. Doing these rental estate investing tips will surely increase your property’s chances of getting chosen in a sea of other rental properties. This kind of preparation of having a written rental agreement is also a sign of being a professional and respectful landlord to your tenants.
Read also: Affordable House and Lot: Comparing Rent-to-Own Vs. Renting
4. Be honest.
Part of being a lessor is making agreements with people. It is essential to be honest with everything especially when the safety of your tenants is involved. Make sure that the image and condition of your property are the same and accurate with what is being advertised. In your agreements, state what is included and not included in your rental prices such as the utility bills for every month, property taxes, the homeowners’ association dues, and the security fee. Be honest with the lot and floor area sizes as it might be crucial to the needs of the tenant if they wish to use it for other purposes other than residing in your investment property.
Having your tenants visit the area and personally meeting them is a great idea since it would be easier to explain things to them, and it would help them immerse themselves in your property for a brief moment before they decide if what you’re offering is what’s right for what they need. Be honest with your rules such as things regarding objects that aren’t allowed in the premises, pets, the incentives that you are offering, and other important things that would guarantee the safety and comfort of your future tenants.
5. Regularly visit your property.
It is nice to have your property being utilized instead of being uninhabited but being a lessor also has its responsibilities that you need to fulfill and one of them is regularly visiting your property and the tenants whenever you can. This will make sure that you are regularly updated with the state of your property or if there are issues that need to be addressed that wouldn’t be resolved by just talking online. Visiting your property will also make sure that you know what kind of home improvements and changes you need to do. Making sure that everything is well in your property is a characteristic of a responsible lessor and would help create a more comfortable relationship between the owner and the tenants.
Finding a Tenant
As a property manager, you should treat your rental property as a business. As much as you want your tenants to be comfortable with you, you must also consider that your relationship with your tenants is and should always be professional. Of course, in choosing the right tenant, you must also know what your property can offer and how is it going to be beneficial to what your tenant needs and requires.
For example, your property is situated inside an executive subdivision with an overlooking view and far from the city proper, the kind of tenant that you should be looking for are those who wish to have a tranquil place to stay while they are, let’s say, waiting for their own forever home to finish construction. You wouldn’t suggest this kind of property to tenants who are looking for a commercial space near busy areas to help them have a spot for their own business. In order to have a successful rental business, one must consider these tips in finding the right tenant for your property.
Read also: Get to know the different types of Real Estate Investments
1. Promote your rental business online
Everything is digital nowadays; from paying bills to even buying groceries can be done online now with just a few clicks. All you need is a decent smartphone or a laptop computer, then you can set to operate your business in the comfort of your own living room. There are several groups about buying and selling properties on social media networking sites that you could join. In these groups, you can post something about the property that you are renting. Now that it seems like everybody has an account on these popular social media sites, it is easier to find possible tenants this way because most likely, people who are looking for a place to rent are searching online as well.
2. Make your advertisement as clear as possible
In any type of business, the key to having an attractive advertisement is by making it as clear and as easy to understand as possible. In order to achieve this, you should start by making a draft first on your notes app. The things that you should put in your ads are the most important things that a person looking for a place to rent would look for. You should include the address of the property; you can just put the general address that is enough to identify the location of your property rather than the complete address because your post would be public. Include also the size of the property, the number of bedrooms, number of bathrooms, and other inclusions inside the property. Some tenants would also like to know if the property is located near essential structures such as grocery stores, transportation terminals, emergency institutions, schools, and more, so it is better to include them. This would make your property attractive to tenants because it is accessible. As per the price, if you choose to include it in your post then you should always be honest with it because most of the time, this is what people are usually first looking at. Of course, do not forget to include your contact information so that people can connect with you if they are interested.
3. Answer necessary questions
After a few days of having your post up on social media, people will start messaging you through the contact information that you provided in your post. They will ask questions about the property that you are offering to be rented. Answer these questions as precisely and politely as you can. It is normal for people to ask questions to know more about the property because this is their way of making sure that your property is perfect for their needs. Make sure to check regularly for new messages because they’re usually located in the spam folder of your account.
4. Screen your tenants
If you’ve successfully found a possible tenant to your rental property, the next thing to do is to screen your tenants. The reason why screening your tenants before letting them occupy your property is to guarantee the safety of your place and your business. This would help you know if the people who will rent your property are responsible enough to respect your place and to know the responsibilities of being a good tenant. Here are some of the things that you should assess before making the decision of letting a candidate inhabit your property:
- Require a rental application from your future tenant. The rental application must include their current address, contact information, number of people who will stay in your property, employment information, and reason for renting.
- Assess if the people are disciplined not to make any commotion inside your property and in the community that your property is in.
- Ask for a reference person of at least two so you’d have a background on your future tenants.
This might seem nosy but we’re talking about the safety of your property here. In making sure that your rental business is always in good condition, one must do these necessary steps. Looking out for your property is as important as looking out for the safety of your tenants.
Applying for a Bria Home
Having a rental business is one of the best ideas for making a profit in your real estate property especially as a form of passive income. As there are always people who are looking for properties available for lease, starting up a rental business is being considered by a lot of people, and you should join in too. Investing in an affordable house a lot is the move by people who are looking for having a rental business. This might seem expensive but it’s definitely profitable in the long run.
Bria Homes offers high-quality but affordable house and lot properties inside comfortable, safe, and friendly communities, which makes these properties the best places to start investing for your property rental business. Applying for a Bria Home is very easy. The properties offered by Bria Homes could be yours through housing loans via your preferred bank. You can avail your first or new Bria home through a Pag-IBIG housing loan or through a bank housing loan such as the ones offered by Allbank, PNB, UCPB, BDO, and more! Whatever kind of housing loan you choose from the available options, Bria Homes will guide you along the way.
The Bria Homes website showcases the affordable properties available that you could see for yourself so you’d have a general idea of what kind of property is perfect for you and your business. You can browse by residential types such as house and lot and condominium. You can also browse by location so it is easier for you to find the perfect place that you need. There’s also a Home Loan Calculator on the website to guide you.
When establishing a property rental business, there are a lot of things to consider and learn before you jump right in. Luckily, these rental property tips would be helpful for you to give a heads up of what’s to expect and a head start. Making sure that having an organized plan in this type of business is a must-do by any aspiring landlords. The top priority in starting a property rental business is always the security of your property, and the safety of your tenants at all times.
Written by Rashid Mansan