Leasing your property sounds easy. However, it is not easy as it looks especially if you don’t want to suffer from financial loss. Making mistakes is common during your journey in running your property investment. However, some mistakes are preventable so it just makes sense if you find out what they are and how to prevent those mistakes to happen. Renting out your property is one of the best strategy to earn steady income each month. Even if it is kind of your part-time job, it will earn you good extra money for sure if you do it right.
Leasing property the right way
If you are new into property business, it is easy to feel intimidated of many things such as property market, tenancy, agreement, etc. however, there is always time to learn and improve. If you decide to lease your property, you need to know what can make it successful.
Owning a property for investment means it is your business to run. Before anything else, you need to seriously treat it like real business. Rental business can be profitable and successful if you treat it properly like the way it is supposed to be. It also means you need to build relationship with your tenants professionally. Communication needs to be built effectively to achieve what kind of business of rental property you want to grow.
Leasing your property looks easy that you think you can do it alone. However, it is not that simple. You need the real team to manage your property investment business properly. In renting out your property to tenant, you need a team consisted at least of property managers and accountant. Property managers can help you managing property and the tenants. They will make sure the property stay in good condition and tenants pay on time. Accountant can help you managing your financial situation.
If you fund your property purchase using mortgage, it means you need to pay regularly each month. There is total amount of the loan and interest payments. Thus, you need to be careful in deciding the amount of the rent you want to charge to your tenants. It is not only mortgage you need to consider in deciding how much you charge for the rent. Local market, fee for the team (such as property manager you hire) and there are other factors that should be taken into consideration.
It is important to lease your property under written contract. Verbal or gesture contract won’t guarantee the security and legality of tenancy agreement. Thus, you need to make sure to document everything. Not making written agreement is like very crucial mistake you are not allowed to do. Remember that your property investment is business. Treating like one means you need to handle everything legally.
Another important thing to do to gain successful leasing of your property is always attentive to your tenants. Make sure that the property stay in good living condition. You also need to be immediate in attending urgent repairs. Nice tenants only deserve nice property and vice versa.
