How To Rent Out Your Investment Property
If you have purchased an investment property from experts such as HOP Property, you will want to rent it out as soon as it is ready, or you will lose money. Here are some of the best ways to guarantee that this happens swiftly while also finding the perfect tenant.
Research The Market
The price is something that will deter potential renters from picking your house to live in or even view. You may have a target rent in mind, but that doesn’t guarantee that price will be met. You should look at what else is available in your area and compare it to your own. Find as many comparable homes or apartments as possible and take note of the rental prices they are asking. This way, you’ll have a decent idea of what you’re capable of achieving. Be prepared to be flexible since you may need to lower your pricing over time or accept an offer if you believe it will work for you – sometimes earning less than you had hoped is better than not earning anything at all.
Work Out The Costs
Once you’ve determined how much rent you’re going to get, you should calculate all of your expenses. For example, depending on your circumstances, you may be taxed at a rate of 20 percent on your rental income (or 40 percent for higher earners). This may make a significant difference in your earnings. Other expenses related to the property include the mortgage (if you have one), landlord’s insurance, and the cost of upkeep. If the rent you could receive does not cover these expenditures, you may need to consider selling the home or turning it into a multiple occupancy property where you can charge by the room rather than the whole house.
People will not want to view your property unless they are aware that it is for rent. As a result, you must do all necessary to publicise it. If you go with a letting agency, they will do this for you, but they will charge you for it. If you want to do everything yourself, you should start by using social media. You can publish information about your property and guarantee that as many people as possible see it by promoting postings to your target demographic. This saves you (and them) time since only those who are serious about purchasing the property will need to visit it.
Local newspapers and word of mouth can be effective ways to market your home, although anything online is always ideal. The more methods you can use for marketing it, the better since the right tenant will see it immediately, and you’ll be able to move them in sooner and start making money.
Although the tenant will handle the contents insurance (or they should do, at least), as the property owner, you will be responsible for the building’s insurance. You’ll also need landlord’s insurance. Landlord insurance is extremely useful and could help you greatly in adverse circumstances. For example, it protects you against non-paying tenants and ensures that you don’t lose money in the long run.