Renting out your property can be a great way to earn some extra income. But it’s important to keep a few things in mind when you’re renting out your home or investment property. Here are a few things to remember when you’re putting your property on the rental market.
Location, location, location
Location is one of the most important factors to consider in a property rental business. If you choose a desirable location, you’ll have an easier time finding tenants and commanding a higher rent. Here are a few things to keep in mind when choosing a location for your rental property:
- Proximity to amenities: Tenants will be looking for a convenient location near stores, restaurants, and other amenities.
- Commute times: A longer commute will make your rental less attractive to tenants. Look for a location that is close to public transportation or major highways.
- Safety: Tenants will feel safer in a neighborhood with low crime rates. Be sure to check the crime statistics for any potential rental locations.
- Schools: Families with children will look for rental properties near good schools. If your rental is located in a highly sought-after school district, you’ll be able to charge a premium price.
- Community: A strong sense of community can make your rental more attractive to tenants. Look for neighborhoods with active homeowner’s associations or lively commercial districts.
By taking the time to choose a desirable location, you’ll increase your chances of finding reliable tenants and achieving high occupancy rates.
Know your target market
If you have a rental property on the market, it’s important to clearly understand your target market. Who are you hoping to attract? Families? Professionals? Students? Once you know your ideal tenants, you can tailor your marketing efforts to reach them.
For example, if you’re hoping to attract families, you might want to highlight the property’s proximity to good schools in your advertising. Or, if you’re hoping to attract young professionals, you might want to focus on the property’s location in a trendy neighborhood. Knowing your target market can make your rental property more appealing to the right renters.
Set the right price
When renting out your property, it’s important to set the right price. If you charge very high, you’ll lose possible tenants; if you charge too little, you won’t be able to cover your expenses. There are a few factors to consider when setting rent prices. First, look at similar properties in the area and see what they charge. Next, consider the features of your property – is it newly renovated? Is it close to public transportation? The more desirable your property is, the higher you can charge. Then, factor in your own costs, such as mortgage payments, taxes, and insurance.
Additionally, take advantage of capital allowances if you want to make the most money out of your rental business. Capital allowances on renting out your property can help to offset the costs of things like furnishing, painting, and decorating and can even be used to reduce your tax bill. To claim capital allowances, you’ll need to keep records of all the improvements you’ve made to the property and receipts for any related expenses. You’ll also need to declare your rental income on your tax return. If you have questions about claiming capital allowances, speak to a tax expert.
Once you’ve considered all these factors, you’ll be better positioned to set a fair and competitive rental price.
Screen tenants carefully
Screening tenants carefully is one of the most important things you shouldn’t skip. The last thing you want is a tenant who doesn’t pay rent on time or causes damage to your property.
There are a few things you can do to screen tenants effectively. First, run a credit check. This will give you an idea of their financial history and whether they’re likely to pay rent on time. Second, ask for references from previous landlords. This will give you an idea of their rental history and whether they were good tenants. Finally, conduct a personal interview. This will give you a chance to get to know the tenant and see if they’re someone you would feel comfortable renting to.
By taking the time to screen tenants carefully, you can help ensure that your rental experience is a positive one.
Have realistic expectations
Finally, it’s important to have realistic expectations when renting out your property. Be prepared for the occasional repair or maintenance issue, and understand that there may be vacancy periods between tenants. If you go into the process with realistic expectations, you’ll be better equipped to handle whatever comes up.
Renting out your property can be a great way to earn some extra income—but it’s important to keep a few things in mind first. From pricing your rental correctly to screening tenants carefully, following these tips will help you rent out your property successfully.