A lot of people invest in real estate because it is a good source of passive income. If it is your first time renting out your property, there are some things you need to consider and decide on to make sure that the process would go smoothly.
Some of the factors that you need to think about include whether you would rent it out for short term or long term, the professionals that you need to hire, furnished or unfurnished and payment methods/scheme.
Short term or long term
Depending on where the property is located, there are numerous laws about rentals that you need to be familiar with. In some countries, renting out a property for less than 12 months is considered short term. If you rent it out for 12 months or more, that is considered long term and if you want the tenant to move out, you need to give them an advance notice of one year.
You could not just evict them since they are protected by the law. So, knowing this beforehand is necessary because you might want to use your property at some time. If you use your property as a rest house, it is recommended that you just rent it out for the short term so when you want to use it, you would not be liable to any tenant’s rental agreement.
Professionals you need to hire
Once you start renting out your property, you would soon realize that you need to hire professionals to help you manage especially if you have numerous properties that you want to rent out. A property manager from a rental property management Brisbane company is one of the professionals you need to hire. Cleaners and maintenance personnel are also among the professionals you must hire specifically if you rent your property for the short term since the tenants and renters come and go. Maintaining the cleanliness and readiness of the property would make sure that the estate is prepared for the next renter.
Furnished or unfurnished
This consideration is related to whether you want to rent out the property for the short term or long term. If it is for short term of course you need to furnish it since the tenants would only be using the property for a short period and it is not logical for them to bring their own furniture. If you would be renting out the property for long term, then you need to furnish it.
Most landlords prefer post-dated cheques for the duration of the tenant’s stay because they guarantee that they are paid for the months that the tenant is renting the property. For short term rent and payment by money, a security deposit is necessary because it is your “safety net” if in case the tenant damaged anything in your property.
Think carefully about these factors because they would determine how successful you would be in renting out your properties. It could also affect your profit and your expenses so you have to be careful in deciding.