For most people, real estate will be the biggest purchase they make in their lifetime. It is for this reason that people don’t take such a purchase lightly. They spend weeks or even months scouring the market for the perfect home. Homebuyers meet with agents, inspect countless houses, and finally, they find a house that is just right.
Their house has to have the right number of bedrooms. It needs a kitchen to die for and a beautiful garden packed with potential. In short, it needs to be perfect. Provided the sale goes through without any major hiccups, these people are now the proud owners of a new house. Now the question comes up, what are they to do with it?
Generally, there are two types of buyers. Some people buy for investment purposes while others buy to live in their new home. The latter of these may have plans to renovate and resell, but the distinction here is that they don’t have passive income in mind. It is the former, people who buy for investment, that is of interest here.
Buying property with the aim being to rent it out is quite a different ballgame from buying a residence. The passive income you can gain from such a venture is a big advantage, but the managing a property can be a stressful, tiresome task. If you plan to rent, here are 15 property management tips you should know.
1. Put Some of the Rent Back into Your Property
People only look after things they own and this also applies to houses. The owner of a property would never dare wreck their own place. They probably have been lumped with enormous mortgage repayments. They have utility bills to meet every month. They have spent their time, effort and hard-earned money on turning that house into a home.
Therefore, property owners look after and value their asset. Renters, on the other hand, have no such emotional or financial attachment to the house. They may have a deposit tied up in it, but it is not theirs. They have not shackled themselves to the house for the foreseeable future, so they probably will not take as much care of it as an owner would.
This is not to accuse all renters of being horrible tenants. Of course, there are people who will do their utmost to maintain the property they are renting, but they will not go the extra mile. After all, it is not their property. For this reason, you should put a portion of the monthly rent back into your property. It doesn’t have to be a crippling amount, as 10 percent will suffice.
Use this money to reinvigorate the home. Most homes can look tired if it has renters there for a long time. This level of lived-in will decrease the overall value and appeal of the home, which will make it harder to find good tenants.
The money that you have put aside can go towards a fresh coat of paint, new carpeting or even hiring a handyman to tighten up the cupboards and realign the shelves. You can also use it for whatever the house needs to look fresh and bright.