We’ve seen, heard and read various tips when it comes to renting a property. How about if we flip the coin and take things in the lessor or landlords perspective? Here are a few do’s and don’ts to the trade.
Do know your market. It’s important to identify the target audience and potential users of your property investments. Since they’re to be leased out, a good amount of marketing will be required to attract tenants. You can’t be properly heard if you don’t know how the market rolls or to whom your asset appeals to.
Don’t just slap a price. There’s a lot to naming a rate than meets the eye. One has to factor in various elements like maintenance expenses, purchase cost of the property, market trends and the list goes on. You’ll need more than just a calculator.
Do look at competition. If you want your properties to have a competitive edge, you’re going to have to do some sleuthing. We call it research. Take a look at similar assets in the market and see how they are priced, advertised and sold.
Don’t forget to screen tenants. We want lessees. That is true but what we don’t want however are bad tenants. There are a lot of them and most seem nice at first up until you discover the flaw much later. As with everything else, screen them first before signing the lease contract. You wouldn’t want to end with a dilapidated unit that’s been unpaid for months on end, right?
Do make effective contracts. Lease contracts serve as your protection and a binding agreement between landlord and tenants. This is a document that keeps everyone liable to their responsibilities and reminded of their duties to each other and to the asset which brings us to our next tip.
Don’t forget to be specific. Contracts should not be broad and vague. Be as specific as needed and make sure to add in all the details needed. Never assume and make do with verbal agreements.
Do take care of the property. You have to put effort into your investments. You can’t expect to fill in vacancies and reduce tenant vacations with a bad looking asset. You’re going to have to put in lots of effort too.