5-KEY-STRATEGIES-FOR-OWNERS-OF-PROPERTY-FOR-RENTAL

by Maria Del Carmen Sanchez

1.-Establishes the correct lease fee In rental properties, your main income is the rental fee, so be sure to estimate and establish a fair and attractive market price so that you can rent the property immediately. Take into account recent market comparables, which will give you the actual rental value of your property. Give more weight to the properties that were managed to rent and not to those that are still available. If you do not have access to this information in your market, it is advisable to seek the advice of an expert broker. Wanting to rent $100 above market can cause the unit to go months without renting, which in the long run results in greater financial losses.

2.-The rental market does not have a direct relationship to the purchase market It is very common to hear from clients that we must raise the rents because the condominium (expenses/administration) have gone up or because repairs have been made or simply because the value of the properties to buy/sell has gone up. However, the prices that tenants pay are not directly related to the owner's expenses; these prices correspond to a very specific rental market in a city, community, sub-community or building.

3.-Consider renewing contracts Although it is true that there are several elements to take into account when renewing the contract with a tenant, from a financial point of view, renewing is usually the best decision, with the renewal you would be avoiding such costs as: Improvements to the property to put it back on the market (painting, carpet cleaning, etc.) Time to find a tenant, pre-qualify, negotiate a contract and the association application phase usually translates into weeks or months without generating income Commissions may be higher in a first contract than in renewals

4.-If the tenant is good, try to keep it One of the most delicate elements of rental properties is the relationship with the tenant. If the person pays on time, maintains the property well, isn't constantly bothered about minor repairs, and doesn't constantly get complaints from neighbors or the association, he's an excellent candidate to renovate and keep you happy.

It is very common as an owner to insist on increasing the rent and be willing to leave "good tenants" for not reaching an agreement on the increase, however, before leaving a good tenant, always think that it is a lottery who will be your next tenant. .

5.-Evaluate the tenantSome aspects to consider: Proof of income: request support showing that they will be able to cover the payments of the property, such as: last pay stubs or income (w2 or 1099) latest tax returns bank account statement.

Credit report: request a credit report to see the history of how you have paid your bills, in the United States you can use as a reference: under 579 (bad) in the nation's bottom 20% 580 to 669 (just) below the nation's average 670 to 739 (good) nation average 740 to 799 (very good) in the top 40% of the nation 800 or higher (exceptional) in the nation's top 20%

It should be noted that if the person is a foreigner and does not have a social security number, they will not have a credit report

It is important to determine in the report if you have had any type of eviction Police Report: Provides peace of mind knowing that this person does not have any police record. It is a very easy and fast procedure to achieve.

References from former owners where the person has lived: it can be a letter, or put the information on the application form where you indicate the telephone number so that we can call and ask for the references.

Although they are telephone references, they give us important feedback, Also remember that if your property is in a condominium which needs approval before your tenant moves in, the person will also go through this filter which will give you double protection.

However, this is not why we should stop requesting all of the above for our safety and also for our investment. Look up details More about this source textSource text required for additional translation information Send feedback Side panels

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Maria Del "Carmen" Sanchez

Maria Del "Carmen" Sanchez

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