The Ultimate Beginner’s Guide to Renting Property for Passive Income
In today’s day and age, having multiple income streams is more important than ever. Besides helping you earn more money, this can also help you in unfortunate situations like sudden loss of employment.
If you are a property owner, you can turn to rentals in order to generate some extra income every month. Depending upon the type of property you have, you can easily benefit from long-term or short-term rentals.
Interested in learning more? Here’s the ultimate beginner’s guide to renting your property for passive income.
Perform Market Research
Similar to shopping around for the best rates for family planning loans or mutual funds, you should perform detailed research to determine the starting rent for your property. This can also help you learn what type of essential improvements you need to set a competitive offer according to similar listings in your area.
Follow Renting Best Practices
While renting your property, you need to follow a few best practices to be fair to your tenants and protect your own interests at the same time. In addition to ensuring utility availability, this includes the approach to perform tenant background checks so you only deal with trustworthy applicants.
Assess Your Property
Another rental best practice that deserves its own separate section here is property assessment. This not only checks for the integrity of your property, but can also help you spot areas that need critical repairs. You can also check if your property has room for amenities that other similar-sized rental in your area bring to the table.
Make Required Improvements
Once you have a good list of required improvements at hand, you can start making them. With solutions like a handyman app, you can easily enhance the look and functionality of your property. At the same time, make sure that you are doing your research so you can get the best deals.
Stage Your Property
After your property is in its best state, you might want to use a home staging service that brings out the beauty of your rental listing. Similar to how social media influencers encourage people to buy things, a beautifully decorated home can motivate potential tenants to contact you.
Take Photos and Videos
Staging your property might serve no purpose if you don’t get high quality photos and videos of your rental. For best results, you might want to use solutions like a tripod ring light that illuminates your property in an ideal way. You can also hire photographers for this purpose.
Create an Online Listing
Once you are ready to show off your property to the world, you can hit popular real estate rental platforms and create a listing for your property. This can attract possible tenants to your property, especially if you upload professional quality images and highlight the best features of your rental.
Be Ready For Traditional and Virtual Showings
Almost every potential tenant wants to see a property a bit more before they sign the lease. With solutions like immersive real estate tours, you can be ready for both traditional and virtual showings that could entertain these crucial requests. This can increase your chances of quickly renting out your property.
Know Your Legal Rights
No matter how much rent you charge your tenants, it’s important that you know your legal rights as a landlord. Besides having the expectation to receive rent by a set date, this includes the right to inspect the property with prior notice. You should discuss these requirements with the tenant and put them in writing.
Sign a Lease Agreement
Once you have found the right tenant, make sure to draft a lease agreement that you can both sign. This helps you both practice your legal rights, as well as understand the expectations and demands from each other. For more convenience, you can use a digital document signing service.
Once you learn these tips, you can make your way through the maze of renting your property. This can ensure that you continue generating passive income from real estate and keep building a better life for yourself.
This article has been published in accordance with Socialnomics disclosure policy.
