4 Tips for New and Prospective Landlords
Rental properties are a good option for those who want to be their own boss or earn passive income on the side. Even with wages rising, inflation means the raises aren’t enough to keep up with the also rising cost of living. Houses, already costly, are predicted to become even pricier, and fewer people are able to afford mortgages.
All of these factors, combined with the fact that many people prefer to rent for reasons like mobility and lack of upkeep create a critical need for housing. Statistics show that the nation has a deficit of millions of affordable homes for low-income families. While preparing rental properties for tenants can be complicated, there are certain basics that can serve as a starting point. Mega Cleaning outlines a few here.
1. Establish a Private Limited Company
By entering the landlord arena, you are essentially starting an investment property business. Forming a private limited company offers protection for you and your personal assets. It also comes with less paperwork and more flexibility than other business structures. To form a private limited company, you can consult a lawyer or, if you want a cheaper option, use a formation service.
2. Decide Whether You Want To Use a Property Manager
Property Personnel notes that property managers and property management companies handle your rental property duties for you, including collecting rent and ensuring compliance with regulations. Whether you use one depends on your circumstances. If you plan on going into the real estate business full-time and having many properties, a property manager can be very helpful. If you only plan on only having one property but as a side income, you may need a property manager so you have time for your other job.
Employing a property manager has its pros and cons. While it may save you time and hassle, it also costs money. It is important to decide, based on your availability and budget and the extent of your plans whether or not having one is worth it to you.
3. Construct a Marketing Plan
Without effective marketing, you cannot attract potential tenants. If you have a property manager or property management company, marketing may be covered, but if not, you need to develop a plan.
Research prices for similar rental properties to yours in the same or similar locations. Create a rental listing and post it online. Obtain good quality, aesthetically appealing photographs and use them in ads. More traditional methods of marketing such as newspapers, flyers or bulletin boards may be of use as well. Use word-of-mouth to broadcast that there is a building for rent. Place a large, readable sign in a visible location informing passers-by that the place is available for rent.
You can create a PDF to showcase your property and email to potential renters. A PDF editor allows you to make changes to documents and drawings without having to print anything out. Simply upload the file online to make changes, then download and share. Of course, social media will expose your message to a much larger audience (Facebook alone has nearly 3 billion users). If you have a Facebook business page, you may be able to upload a PDF. Posting a PDF on Facebook is easy, straightforward, and can be done quickly.
4. Make the Building Appealing
Ensure all parts in the bathroom are functioning correctly. The kitchen often serves as a gathering spot as well as a place to cook in. Consider replacing the cabinets, countertops, sinks, and floors with more modern styles if they are old. You can find contractors on service directory sites online that match you with professionals that fit your needs.
A fresh coat of paint is a less pricy way to make a building look nice. Colours can affect the way you feel and even perform, so it is important to pick the right ones. For a rental property, House Beautiful points out that neutral shades like beige, cream, white, taupe, and grey are good. They match virtually any colour scheme, allowing tenants to decorate as they please.
Going into a rental business requires effort. However, by investing in basics and putting in the time, you can turn a rental into a steady stream of income. Remember to follow a few good business practices such as setting up a private limited company, deciding on a property management company, strategic marketing, and sprucing up the home to appeal to renters.
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