27 MAY 2021 21
Many people believe that the life of landlords is cloudless and carefree, but in reality, it is not an easy business that carries a lot of risks. So, if you are going to rent out an apartment for the first time, it would be useful to learn about the most common problems and mistakes in order to avoid them in your own practice.
1. Absence of signed lease.
Some beginners believe that verbal agreement is sufficient. No matter how familiar or nice the person is, be sure to sign a contract. Otherwise, you run the risk of running into unnecessary expenses, making repairs after the tenant. You can organize it via real estate agents who have the necessary lease templates in their real estate management system.
2. Lack of collateral value.
Rental payment is usually taken in advance for each subsequent month of residence. There is also a one-time deposit that is equivalent to the cost of a monthly rental. You will use this amount as a guarantee in the case the tenant is unable to pay according to the contract.
3. Number of tenants is not specified.
It is not a rare case that you sign a document with one tenant and then discover that a whole company lives in your apartment. You can specify the number of people who can live in the rented facility.
4. Careless attitude to rent.
This activity cannot be treated as a hobby. It is a serious business that demands strict organization and control. If you are too busy to monitor it, entrust this task to real estate agencies who always build mobile app for real estate for efficient management.
5. Insufficient tenant screening.
It is important not to neglect the personal details of potential tenants: information about the place of work, links to profiles in social networks, data of relatives or parents. It will allow you to avoid unpleasant situations during the lease: sudden departure of tenants, non-payments, breakdown of household appliances, etc. Again, you can ask real estate agencies for help – they usually build website for real estate agents and have access to a wide client base.
6. Fines and penalties.
When renting out the property, do not forget to negotiate any fines. For example, you may apply an additional charge for late payment or damage to your property. Of course, these things need to be specified in the contract, especially if you rent out a property at a competitive price.
7. Absence of regular check-ups.
Make sure you will regularly visit your property for inspection to ensure it is kept in accordance with the signed agreement. At the same time, you will have a chance to assess the condition of smoke detectors, ventilation and heating systems, taps, walls and other appliances. It will devoid you of additional expenses on unexpected repair works.
8. Other nuances
There are many little things that you need to discuss in advance, for example, presence of pets or the possibility of the tenant to make repairs and re-plan the rented premises. It is better to stipulate all dos and don’ts before signing an agreement to avoid any possible conflict situations.
Summing up the above, renting commercial or residential real estate requires a detailed lease agreement that will take into account the smallest nuances. It is advisable not to neglect the help of real estate agencies These companies employ professionals and use real estate business management software -they will help you avoid mistakes and serious financial losses. Of course, all these tips are advisory, however, if you follow at least a few of them, you can avoid many unnecessary issues in the future.