One of the best ways to make a lot of profit from property business is by renting the building you buy. As the price of property is increasing, many people find it hard to buy their own house so they need to find a house or apartment to rent. Even though purchasing a rental property sounds really tempting, becoming a landlord is not as easy as it sounds. If you make a wrong move, you will lose money instead of making profit. To make sure you can gain good amount of profit from rental property, here are some things you need to do.
Plan the Financing Well
Before you start hunting for building, make sure you set a good planning for Agen Bola, especially regarding the financing. Find a good neighbor and then find out what kind of residence people prefer to rent in that area. After that, make a good planning on how you will pay for it. Will it be best to pay cash or should you get a loan?
If you are sure that you can pay the installments, taking loans can be a good option if you don’t have cash available. Don’t forget that you need to pay the taxes as well and you also need to pay the advertising and renovation cost. You also should make a backup plan just in case you can’t find tenant for a long time and you need to pay the tax, installment cost and maintenance property with your own money.
Advertise the Property and Screen the Tenant
Once you have purchased the property, it is time to advertise it online, find tenants and start making money. But remember, you are not obligated to seal the deal with the first tenant that comes your way. You need to screen the tenant first.
Do a background check and don’t forget to call their past landlords. It is important so that you know that your building is on the right hand of someone that will take care of it. If you skip this step, you might end up with some tenants from hell that will wreak havoc in your building.
Pay Attention to the Maintenance Cost
Many landlords underestimate the amount of maintenance cost of their building and this is the thing that will make them losing money instead of making profit. Maintenance cost of a rental property can be really high, especially if the tenant doesn’t really take care of it. It’s not always the tenant’s fault, though. Some rental property owners neglect their building when it is not rented which makes maintenance cost go higher. So, when you are setting the rental price of your building, make sure you count the maintenance cost as well.
Set a Rule
As a landlord, you need to set some rules for your tenant. For example, the rental cost need to be paid before a certain date or who should pay in case there are some parts of the house that needs renovating. Renting a building is very risky and those rules are made to reduce those risks. Those rules also will prevent misunderstandings and problems that might arise in the future.
Treat Your Tenants Right
Even though you have set some pretty strict rules for your tenants, it doesn’t mean that you should be mean to them. It is important to build a good relationship with the tenants so both of you will not afraid to communicate in case something happens. Furthermore, if you are blessed with a good tenant that maintains your house well, you should cherish them. Raising the rental cost annually is not really needed if the tenant doesn’t make you spend too much on maintenance cost.