It is universally agreed that the most important aspect of owning a property is the ability to manage and maintain it properly. Luckily, there are specific management requirements that will help keep your property up, running and generating revenue for the long-run. These can be completely hands on, or you can outsource them to property management companies (like TheHouseMonk) to effectively monetise your property.
How to ensure steady rent
Keeping an open mind when it comes to tenant screening can help ensure the property remains occupied throughout. On average, over the period of 36 months, two tenants would have occupied the property. Enforcing strict restrictions might hinder the occupancy rate of your property, lowering your rental collections by 10-15%. Property owners and managers must be flexible enough to accommodate different types of tenants or be prepared to take a hit on your rental income.
How to Increase Rent
Explore short term rentals – Earn a quick buck with short-term rentals as their popularity grows globally. Short-term rental platforms, such as Airbnb and HomeAway have grown spectacularly. The global vacation rental market will register a Compound Annual Growth Rate (CAGR) of close to 7% (an incremental growth of an estimated $57.1 billion) by 2022.
Provide a fully-furnished house – Not only can you get more money from a furnished rental; demand is growing in the furnished rental market. This means chances of getting a good rent on furnished property is something property owners can rely upon.
Same house, multiple tenants – Be open to the idea of renting the house in parts. Rent the house out to three tenants in a three-bedroom house who are likely to pay you a good, individual fee than to one single tenant. Remember, sum of the parts is greater than the whole.
Reduce the deposit – A large deposit is almost always the biggest deterrent a tenant faces when renting a property. This might prevent the tenant from renting the property in question. Instead, you can increase the asking price for the rent in exchange for reducing the initial deposit.
How to find tenants
The fool-proof strategy of finding tenants lies in an omni-channel approach. Don’t put all your eggs in one basket, spread the word, you’ll be surprised to see which channels are proving to be more effective than your trusted ‘for rent’ sign outside.
- Put up your listing on online rental portals, most of them are free
- Use local brokers to spread the word, they’re the 21st century masters of whispers [subtle but effective Game of Thrones reference]
- Use your own social media channels like Facebook, Instagram and Twitter. Put out posts on groups looking to rent properties, the network is massive. Supply pictures and videos of your property for a better response
- Get referrals from family and friends
- Quality tenants will look for property managers that are organised and efficient. Using the right property management software will help you stay organised and automate tasks like rental collection, remittance, grievance addressal, maintenance checks and ensure everything is in order.
How to maintain your property well
One of the most important things you should do with your investment property is to keep up with the property maintenance. An ill-maintained property will fall into shambles faster than you think, causing a large monetary impact on your pockets. Not only are you legally responsible for keeping the property maintained as per the required health and safety standards, you will also have a hard time finding and keeping tenants for a poorly maintained property.
Perform routine inspections on your property. Make sure you do it once a year, if not two to ensure the longevity of your property.
Hire a professional to handle all the repairs required at the property and fix them immediately. Leaving them to linger on for a few more months might prove to be very heavy on your finances later. Remember, if you catch it early, you’ll only have to repair it. You catch it late, you’ll have to replace it.
Sign up for an Annual Maintenance Contract to deal with licensed professionals while dealing with appliances who will make sure they keep the expensive appliances running smoothly.
Encourage tenants to get in touch with you if they’re facing any issues. Responding to their problem on time and fixing it will ensure you retain control of how you’re fixing it, what you’re using, etc instead of letting the tenant figure it out themselves.
That was our short but effective handbook on property management, follow our blog for more to come on maintenance, monetising, insurance and taxes.