There are many kinds of Lease business including rental houses. Many people realize that the house is a long-term assets. If you have an empty house that is not occupied, rather than paying someone to guard it, it’s better for lease. By renting a house, you can collect the return of capital in use to buy it. Not just a turnover, you can also get the benefits of home rental business. But just like other asset lease, rental home also needs to be done with caution. There are 3 main things you need to consider before you start renting a house.
1. Rental Prices
The first thing you should know is the value of a decent rental home. Find out in newspapers and other mass media, what is the standard rental property which is equivalent to your home. After that, ask the broker agent to estimate the rental value of homes you may receive. This will give you an idea of the value of the rent that may be offered. You also can compare with nearest place how much they charge. The important thing is the rental value must be more than 8% from your loan bank installment. It is important as there’s many hidden charge to be include such as maintenance cost, housing tax.
2. Rental process
For rent bidding process, you can use the help of real estate broker agent, or do it yourself by placing advertisements in newspapers/internet or offers from mouth to mouth. In order to more easily and quickly sold out, be sure to check the condition of houses ranging from conditions of damage, cleanliness, electricity, drainage, and so forth. The house is worth living and adequate facilities certainly have a higher rental value.
3. Prospective tenants
If you already have a range of appropriate rental value house, the next step is to assess the readiness of prospective tenants to keep their rent obligations. Be careful to decide who is entitled to rent your home. Do not let you rent it to the fraudster or someone who may be abusing the functionality of your home, for example, make your home as a hotbed of drugs. Be careful.
4. Collect your rental
It is one of the hardest part. To collect rental money you need to have a system. You need to have a ledger for the rental account, know when to collect and how to handle it. Collect rental need passion. You must know about your tenants. Always connecting with your tenant and do some site visit at least one time per month. Sometimes, the tenant run away without you know. Remember to get deposit from your tenant before they live in your house.
How about that? This is the basic thing before you rent your property. If you have any additional issues let’s share with us.