Tips on How to Start Earning Rental Income
If you own a property that you are not using, you can put it up for lease and have another family use the property for an agreed monthly fee. This is called a rental income, earnings from a property being rented. Rather than acquiring as many properties as possible, take a step back and think of the best way to make more money with your current property.
LOCATION & AMENITIES
One of the first factors that renters look for and consider when leasing a property is location. Your property location should have access to public transportation, school and community services, and commercial establishments and business districts. This will make the property very attractive to any type of renters – be they single and career driven, or a young family with kids.
Some renters may also look for community amenities that they can use when then rent your property such as playground or leisure area for family and kids, gym, swimming pool, 24-H security, and parking space. If your property has several community amenities exclusive for homeowners and renters, you may also want to point tat out to potential tenants when the visit and see the place.
PREPARE & FIX YOUR RENTAL PROPERTY
Before putting your property on a listing. Make sure to check for any home damages such as broken faucets, leaking pipes, loose floor tiles, or burnt-out light bulbs. Make sure to have everything polished and ready for the renters to move in should they decide to. Afresh coat of paint, and clean rooms will help the potential renters visualize how they want the rooms to look if they live there. This will also help keep up your property’s market value.
CHECK THE MARKET VALUE
When it’s time to have your property rented make sure to know how much rental income you can earn from it by looking up and comparing to other rental properties in your building or area. A market value is a safe estimate on how much one can generate on his own property, and how much rental income you will earn. You may need to seek a professional advice from a real estate broker on how to properly price your rental property. It will help you fix a reasonable price that fits well within what the property is valued for.
MANAGE AND ADVERTISE
It is ideal to manage your own rental property if you have the time and energy to do so. Most rental property owners prefer managing their own rental to secure the rental income all to themselves. You can draft a lease agreement and have the tenant if there are no outstanding questions or clarifications during the negotiations and has clear understanding of the terms. However, you may also have the option to get professional property manager to do all the paperwork and managing the property on your behalf. Property developers, and/or real estate companies offer rental property management for those who do not have the time, and who rather get someone knowledgeable to handle leasing a property.
Once you have figured out how to manage your rental property and that it is ready to take on renters. You start advertising and letting people know that your property is available for lease. You can also seek help with a real estate company and put your rental property on a trusted real estate company listing, and have someone manage the process for you.
Overall, you may find that you can reach your business goals not only through acquiring a large number of properties but by renting and managing a property more intelligently and earn rental income from it.