Being a landlord seems an easier job, but it can be challenging at times, especially when you are starting out. There is a lot more in renting than just finding and screening the right tenants, creating the rental agreement and collecting the rent. The following guide will help you sail through all this process without a glitch.
Rental property = Business opportunity
When you plan to rent out your property, make sure to treat it like a business opportunity. It may not be your sole responsibility to manage your rental property but because, it is a source of extra income so you must put a bit extra effort towards it. Moreover, it is equally important to build professional relationship with your tenants, keep your finances intact and perform thorough screening prior the next contract.
Make rent your priority
After renovating and renting your home, rent is your revenue. There are a number of landlords who are not aggressive in pursuing rent and late rent charges. If you are a first-time landlord, you must communicate with other landlords to know the process. At the same time, if you have found a tenant who has stopped paying rent altogether or started ignoring your texts and calls – you need to plan their eviction and start screening the next potential tenants.
Find additional income opportunities
Most of the investors think that renting out your home as a whole unit is enough. What do you mean by that? If somebody buys a house, the owner usually rents out the house and that’s it. However, it means that you might be ignoring some potential additional income ideas that could improve your return on investment. Here are few suggestions to make you earn more.
Don,t invest into renovation that won’t generate higher rent
Pakistan real estate is a stable sector due to cash-based transactions. After having primary residence, majority of people tend to buy investment properties to rent ahead and there is nothing wrong in it. However, the wrong is to renovate the property to an extent that it won’t generate higher rent for you. Considering the neighbourhood, making renovations that make the house nicer than many owner-occupied homes, is wrong to an extent. It is because these renovations do not lead to a high enough rent to justify the renovation expenses.
Carry out regular inspections
It is a good idea to regularly inspect your property to check the condition or damage (if any). However, you must know that you are legally forbidden to enter the home with tenant’s permission. It is best to give your tenant’s formal call or letter to seek his permission and this should be stipulated in your tenancy agreement.