Buying a property doesn’t always leave you getting to stay in it. Sometimes, we buy it with the intention of investment and renting it out meanwhile.
However easy this sounds, all house owners do wonder why their property isn’t attracting a suitable renter or at a price that may help them pay maintenance costs of their investment. While it can be a lot of things related directly to their property, only a few homeowners consider that something outside that perimeter might be bothering the potential renters. And as a smart homeowner, you must know how to iron out those wrinkles.
Listed below are the biggest nightmares of renters and how you can get past them:
1. What if the house is poorly maintained?
Solution: Make your property more livable and attractive.
While renting out, ensure that the house is in the best of its condition. Just because you won’t be living there doesn’t mean that you don’t need to pay attention to its physical health. Have a round of pest control before putting it out on a rental list. Also, resolve all plumbing issues.
Be honest to the home seekers by giving them even the smallest of information about things and issues like leaky taps, neighbourhood, etc. Disclosing every bit of detail sends a positive and strong message to the other person that you would never cheat on them.
2. What if the house owner gives ‘just’ the house for rent?
Solution: Provide them with the basic supplies.
Things like a bed, a small table, a couple of chairs, a few utensils, basic bathroom accessories, light fittings, etc., can help the place seem more comfortable and inviting. If your house is located near CBD, universities or offices, then a furnished house would be rented more easily as compared to unfurnished houses or apartments in that location. This is because of the demand from students, expatriates and young couples in those areas. Moreover, a furnished house attracts higher rentals. Thus, it can be a win-win situation for you.
3. What if the rent exceeds my budget?
Solution: Set an affordable price.
If renters are repeatedly foregoing your listing for budget reasons, then reconsider your pricing and offering. Explore other properties in the area to get a better idea of the rent range and reset a figure for yours accordingly. You can also offer small discounts or incentives to make your house look more desirable to the renter.
4. Will the new house be safe and secure for staying?
Solution: Ensure all possible safety measures.
This could mean anything from installing high security locks for the main doors and cupboards to a good alarm system and CCTV.
5. What if my neighbours are noisy or non-cooperative?
Solution: Try to make your house soundproof.
Soundproofing the windows and the doors is a good solution to get past this nightmare. Also, assure your renters that you would be available if any issue arises with the neighbours or when they refuse to cooperate.
6. What if I don’t get my deposit back?
Solution: Get into a written agreement.
Sign an agreement with your renter to guarantee him the return of his deposit when his renting term is over. This will signal him that you are a genuine person of integrity. Also inform your tenants about RTBA, or Residential Tenancies Bond Authority, an authority that deals in tenancy bonds and ensures that there is no discrepancy from any of the two parties.
If possible, you can also establish with your tenant through a comprehensive condition report that you shall not charge the renting party for minor repairs and shall bear it yourself. This would avoid any disputes at the end of the tenancy period. If you’re renting out your house for the first time, then you must know that a landlord has certain obligations (depends state to state) to abide to and failing to do that might attract a fine. This is the list of some of those obligations.
7. How much will be the monthly outgoings?
Solution: Introduce all possible outgoing costs in the beginning.
The true cost of renting a house may not just the monthly rental but it may also include other outgoings such as electricity, gas, internet, membership to the local gym etc. While some costs are generally included, but it may not always be the case. Clarify to your renters what costs shall be on them. You may also provide them an estimated cost based on the previous bills. This will set clear expectations and avoid future misunderstandings.
Taking care of these issues will help you establish trust with the home seekers and crack a deal sooner. Being sensitive and responsive to your tenants’s problems is the key to maintain a long-lasting and successful relationship with them.