Especially residential property rental businesses such as houses and apartments are a favorite for people who have money. Interested in going into the property rental business? Check out the guide before starting this Passive income business.
1. Set the lease period
Set the rental period you want, for example monthly, per semester or per year. To set a rental period, you can adjust to personal financial goals. If you want to quickly gain profits, you should rent property per month because it is more flexible in raising and lowering the rental price according to market conditions. However, if you are looking for financial security, rent it for a longer rental period such as a year or two.
2. Establish rental prices for property
Before renting out a property, you must first set the rental price. In setting the price of this rental you may not be careless, so as not to lose or not sell because of expensiveness. To determine the rental price, you must first survey the market prices of property in the surrounding area. Also, consider the condition and location of your property.
3. Create an agreement contract and deposit money
Don’t forget to make a written agreement for the tenant. This is important to safeguard your property assets. Write down the obligations that the tenant must do and the costs that must be incurred in the event of property damage. Also, apply the deposit system. The deposit amount must be paid in advance. Later this money deposit will be returned to the tenant at the end of the rental period if there is no damage or loss to your property. Conversely, if there is property damage, then you can take part or all of the deposit money.
4. Know the tenants of your property
As a residential owner, you still have to be careful of prospective tenants of your property, choosing the wrong tenant can affect the smooth payment of rent and maintenance of your property. It’s good if you know the prospective tenant first, at least know the financial condition. Take the time to chat just knowing their activities, work, the purpose of renting a house. Also, ask the social media to make it easier to get to know potential buyers further.