Whether you’re renting a second home or using a room in your home as a source of income, renting a property can be an effective way to generate passive income. Here are some factors to remember to get the most out of both short and long-term rentals.

1) A Vacant Property Is Not an Investment if It Is Not Being Used as Income

If you leave the property vacant, you will be responsible for annual maintenance, renovation, utilities, taxes, and management fees. For this reason, it becomes essential to rent the property. First, the income must be sufficient to cover the annual maintenance costs and financial and administrative burdens. The second is to secure additional passive income.

2) Choosing the Right Type of Rental Contract

When renting a house, the first thing you need to know is that several types of rental contracts are on the market today. Each contract has its own characteristics. Knowing how to operate the appropriate contract according to your needs as an owner and the features of your property is the first step in getting the most out of your rental.

3) Act on Your Own

To get the most out of your rental property, it is also essential to cut down on unnecessary costs. Renting out a property is not an easy task. This is why there are real estate agents who work with the owners.

In many cases, owners who rent out their properties use agents to handle everything from recruiting tenants to drafting contracts. In some cases, they even manage maintenance and rental fees for the apartment. Because of these activities, the agent may ask you to sign a significant percentage of the contract. What we can advise you to do is to try to disintermediate your contract as much as possible. The best way to do this is to eliminate these costs.

4) Advertise Your Home Independently

Profitability also comes from reduced mediation costs. To do this, you should consider promoting your property rental independently. There are many Internet sites where you can post ads for property rental.

Of course, this is not a solution for everyone. Real estate agents play an essential role in mediating between landlords and tenants, so for inexperienced subjects, the advice of an agent is vital. However, experienced owners can save money and earn more profit by doing it on their own.

5) How to Present Your Property to Tenants

First impressions are crucial. Even in the case of rental contracts, you need to follow this rule. Remember that a tenant looking for a property may be able to compare many flats, even directly from an advertisement on the Internet.

Making the house look clean and bright is the first way to directly make a good impression on the tenants from the property advertisement. On the other hand, if you have a real estate agent to assist you, expect a photo report of the property.

Next, you need to present to the tenants the added value of each property, such as the terrace, the view, and the location. Then, all you need to do is provide nice furniture that matches the type of property.

On the other hand, if you do not have the opportunity to invest in furniture and it is not adding value to your home, it is better to have one less piece of furniture, especially if it is old.

6) The Rental

If you are looking to generate income from your home, rent is the base. Rent is a value that is closely related to the value of the property. Finding the right rent is not an easy task. This is mainly because of the different amounts of rent that apply to each type of contract.

Generally, it is now accepted that the rent for a property should be as fair as possible compared to the property’s value (and similar properties in the same area). This allows potential tenants to finalize their contracts quickly.

Are you renting a property? Let us know if these few tips have helped you in the comments below!