How Profitable To Rent An Apartment

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How Profitable To Rent An Apartment
How Profitable To Rent An Apartment

Video: How Profitable To Rent An Apartment

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Video: Rental Property Investing 101 - Getting Started in 8 Steps 2023, February
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  • Where is the best place to look for future tenants?
  • Is it worth paying to a real estate agency to rent an apartment?

Renting out a home is a profitable business, but not always safe for the owner. There are some possible risks that an owner may be exposed to when renting out their home. Let's consider the most common problems.

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1. Risk when renting a non-privatized apartment. In this case, there can be two difficulties.

Firstly, for the delivery, the written consent of family members living together with the tenant of municipal housing, as well as the municipality, is required - his interests are represented by housing and communal offices.

Secondly, it is possible that tenants may forge title documents and, as a result, may try to privatize a non-privatized apartment.

2. The tenant can move out of the apartment without paying. If the employer does not live at the place of registration, then it will be quite difficult to find him. That is why it is necessary that the owner of the apartment has additional information about his client. Namely: contact details of the employer's relatives, work or mobile phone, place of work, etc. This information will allow the owner to have some leverage over the employer. In addition, the lease must indicate not a fictitious, but a real amount so that the owner can claim the appropriate refund.

And another very important point. It is better for the landlord not to be lazy and personally come to the rented apartment for rent. This will make it possible to assess the condition of the apartment and the people living in it. Often there are cases when hirers literally "kill" an apartment in a short time.

Where is the best place to look for future tenants?

In order to avoid a number of troubles, future tenants for a rented apartment must be chosen wisely.

Consider the main options for finding tenants, the knowledge of which will be useful for apartment owners.

Option one. Search by acquaintances and friends. The advantages of this method include the fact that in this case the future tenants will be well known to the owner of the rented apartment. However, choosing tenants among friends and acquaintances must be rather careful and prudent. The fact is that, as practice shows, quite often some acquaintances and friends can abuse the trust placed in them. So, they can live and not pay for a long time, referring to money problems. Since, as a rule, no agreements are concluded with acquaintances and friends, it can be very difficult to resolve this problem. Thus, from the total number of friends and acquaintances, it is necessary to immediately single out only reliable and trusted people in whom you can be 100% sure.

Option two. Search for tenants through advertisements in newspapers, the Internet, etc. The advantages of this method include a low level of material costs and a much larger selection of potential customers. The disadvantage should be attributed, of course, the ability to get to the swindler and, while succumbing to his persuasion, not to conclude an appropriate contract. In addition, there is also a risk of renting an apartment to a real estate agency, which will then rent out housing at a higher cost for a short time to different people. Experienced landlords advise that you need to call several major agencies to objectively assess the value of your home. If the difference in price is significant, it is necessary to take its average value.

Option three. Contact a real estate agency. It should be noted that about 90% of landlords use this method. The advantage of this method is that, as a rule, real estate agencies offer quite attractive conditions for apartment owners and practically do not charge money for the service provided. At the same time, professionals can fairly objectively evaluate this or that apartment and advertise it correctly. In addition, as practice shows, the agencies do not abandon the client throughout the term of the lease and, in the event of any problems with the tenant, they take on the resolution of various conflict situations. The disadvantage of this method should be attributed only to the fact that when contacting a real estate agency, the owner must be prepared for frequent calls from this agency.As a rule, the question is standard: "Have the tenants moved out?"

Is it worth paying to a real estate agency to rent an apartment?

First, the owner has to choose the right agency. Of course, the best option in this case is the recommendations of friends and acquaintances who have dealt with real estate agencies. If the owner does not have this information, he needs to contact several real estate agencies and compare the conditions they offer. In this case, it is advisable to visit the offices of these agencies, as well as their websites on the Internet. It is also useful to review the history of their advertisements in newspapers. If, when visiting an office, you find that it is one small room in a semi-basement room or that a small number of employees work in this office, then it is better not to contact such a company. If the real estate agency refuses to invite you to their office, this is a sure sign thatthat this agency is a one-day firm.

Secondly, you need to clearly define the form of cooperation. You can work with a real estate agency in two forms - free and paid.

Free cooperation consists in entering the apartment into the agency's database and further notifying the landlord about potential clients. For example, if the landlord has a standard apartment, then free cooperation is the best option, because currently standard apartments are rented out very quickly without additional advertising costs.

Paid cooperation is an exclusive service with advertising the object, visiting a specialist for each show, insurance at the expense of the company, guarantees, service, etc. Thus, a serious agency fully controls the process of commissioning an object and living in it throughout the entire term of the contract. It should be noted that the option of paid cooperation is more suitable for owners of objects in the expensive segment, in which demand is lower than supply.

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