24 MAY 2021 25
Renting out an apartment or office may look like a very attractive business. But it is a whole art to make it work without pitfalls and bring profits. Being a landlord seems very cloudless to those who did not try this activity themselves. Actually, it is very far from being easy and even can become a nightmare due to an incorrectly organized process. Many landlords make a number of mistakes early in their career that can turn a profitable business into a problem. In this article, you will read about the eight most common ones and ways to avoid them.
Independent search for clients
Sometimes, real estate property owners believe it is very easy to find tenants via the Internet. Yes, the Internet provides almost limitless possibilities, but it does happen so fast. You will increase your chances to find potential clients online, but it is too costly to advertise your property object on your own. It is much more profitable to seek help from specialized online services or real estate agencies. They use mobile app builder for real estate. For a small fee, you can join the platform and have full access to your ads.
Miscalculation of the rent cost
The next most common mistake is the overestimation of the cost of the offered real estate object. All landlords dream of renting out quickly and profitably, but many forget that one of the keys to success is a competitive price. The online platforms using management system for real estate offer you to use an online calculator. This feature will help you to determine a reasonable monthly payment for your property. Remember that a fair price will speed up the whole process. It is much more profitable to make a discount and start earning within a week, not a month.
Absence of lease agreement
It is one of the most serious mistakes landlords make. This formality may seem unimportant, but it will save you from unexpected consequences. It is also crucial to carefully read the text of the agreement and not to use just a template from the Internet. Don't be afraid to scare potential tenants by asking them to leave a deposit. It will become your rental guarantee, as well as compensation for breach of contract or damage to property. You can also ask a real estate agent to help you with this agreement. All realtors have a clear-cut template in their real estate management system.
Treating your activity as a hobby
Buying a property object to rent it out is always an investment. And you should never treat any investment as just a hobby. It is a business that demands careful handling and a detailed plan of action for everything to run smoothly. If you cannot deal with it from this point of view, partner a real estate agency that will do all work for you. Such agencies design an app for real estate that will allow you to monitor the status and income of your property at any time.
Failure to screen the potential tenants
Landlords are usually so happy when a client is found that they disregard the necessity of properly checking them. In this respect, you will win again if you partner with a real estate agency. Companies build websites for real estate agents where they have access to the client base. So it takes minutes for a professional agent to check if your potential customer did not have issues with the other landlords.
This list of mistakes is not complete, there are many other issues you may come across while renting out your property object. So if you have not enough experience and time for this activity, entrust it to professionals. Even if you need to pay for their services, the final costs will be much lower, as the qualified realtors know how to avoid many tricky situations.