Forbes: Top 5 Milestones for Landlords to Focus On When Renting Out Their Residential Properties
Renting out a property can be profitable, but there are a number of potential issues to watch out for. Property Passbook’s CEO Colin Bogar was recently interviewed by Forbes on the things individual landlords should be mindful of when renting out residential property. Here are some additional points global landlords should take note of.
1.Tenant Reference and Employment Checks
Too many landlords meet prospective tenants in person and trust them because they are nice and affable people. Unfortunately, not everyone has the best track record with their previous landlords and a lot of future pain can be saved by both asking for references and speaking to the previous landlords. Employment checks should be straight forward, so any wavering or difficulties on this issue should be a definite red flag.
2. Price Your Rental Correctly
The amount of rent you charge your tenants should be a percentage of your home’s market value. Other than your home’s worth, you’ll also need to consider what landlords are charging for similar rentals in your area. It’s important to note that depending on the jurisdiction, you may have limitations on future rental increases so be weary of pricing too far below market without knowing your local rental regulations. For specific Airbnb and long-term rental estimates for your rental property from Property Passbook – click here to register.
3. Establishing Clear Acceptable Use Policies
It’s important to create clear acceptable use policies in the lease before your tenants move in. With written policies, there are no gray areas as they clearly spell out what is and isn’t allowed. This will be useful if you need to call out inconsiderate behavior or handle certain requests after your tenants move in. This can include but not be limited to not permitting smoking (both tobacco and marijuana), pets, subletting policies, and property alteration (paint, renovations, landscaping) requests.
4. Identifying Your Renter Market Segment
Identifying your market segment can help you decide where to advertise your property and minimize your marketing costs. If it’s ideal for families, ads in appropriate local media make sense, while college students will be more likely to respond to an ad on college portals. Make a list of the positive aspects and be sure the headline and key points used align with your expected target renter. A unit with multiple bedrooms, a large kitchen and proximity to schools and playgrounds will probably attract families, while an upscale one-bedroom with luxury finishes in a busy urban area will appeal to young professionals.
5. Thorough Property Inspections and Handover Expectations
Doing a property inspection prior to tenants moving in is always a good idea to identify any pre-existing issues your property has. Ideally photos and videos should be taken to help prevent any future disputes with regards to the timing and cause of any damages during move out. Ideally, before you start marketing the property you will want to repair any existing damage and make sure all utilities are working in order to receive the maximum rental on the property. Furthermore, the lease should clearly indicate the condition the property should be returned in with the tenant forfeiting a proportionable amount of their deposit otherwise.
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Renting out property, especially as a global landlord, takes time and effort to get right. Find out how Property Passbook can help you to maximize your rental income here.