5 Tips when renting out your property
There are many things as a property owner that you should
know before renting out your property. Renting out your property
has the financial benefits of getting extra money in your
pocket on a regular basis. Yet, it can have dire financial
consequences if you are not careful in protecting your investment.
To protect your investment, follow these 5 tips when renting
out your property:
Tip 1: Make sure you have read and understand your mortgage
bond insurance policy. Some insurance policies for homeowners
state that you are not insured if your property is vacant
for a certain time period; let’s say 30 days for example.
Before you go on an extended vacation or decide to not rent
your property for whatever reasons, read the fine print of
your policy. Be very careful to ensure that there are no lapses
in your homeowner’s insurance policy.
Tip 2: Employ a rental agent. Many estate agents that sell
homes also work as property managers. They are professionals
knowledgeable about the real estate market and can help you
get top dollar for your property rental. They can take care
of all the time-consuming tasks involved in renting a property.
They can handle things like advertising the property, showing
the property, screening applicants, collecting the deposit
and monthly payments, and deal with all maintenance issues
on the property. Find out if the rental agent has other “lower
percentage” options to choose from. For a reduced rate,
you may want only for them to find you the tenant and you
can handle the rest of the property management issues.
Tip 3: If you decide to handle the rental of the property
yourself, then it is suggested that you hire an attorney to
assist you in the completion of the lease agreement. This
can save you a lot of money in legal fees in the long run.
Talk with the attorney and make sure the rules of the homeowners
association (if any) are included in the lease agreement.
The lease agreement is your back-up in case disputes arise
between you and the tenant.
Tip 4: Always keep the maintenance of the property in good
shape. Small maintenance issues can become big maintenance
problems if they are not handled quickly and professionally.
A landlord who responds to the maintenance concerns of a tenant
will build good rapport with them and keep them happy in their
current living arrangement. Ignoring the tenant when he calls
to complain of a leaky roof is a sure way to damage your relationship
with the tenant and it may cost you more money to fix in the
long run. If you want to have the tenant take care of your
property, then you need to show an interest in keeping it
in good working order.
Tip 5: Learn to be flexible in the dealings with your tenant.
Understand that a good tenant makes a landlord happy. Compromising
in certain situations can lead to the tenant staying longer,
be happier living in your property and paying the monthly
rent on time.
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