Monday, May 12, 2014
Renting out your property can be a good avenue for earning income without clocking in work hours. However, despite this considerable perk, there are some challenges that lie ahead for landlords.
The first step to making your property earn money for you is to find a good tenant. Having a long-term tenant or at least getting new tenants soon after old tenants move out is the best-case scenario for landlords. Long vacancy periods mean no income or even sunk costs, since you’ll need to pay for property taxes, maintenance and repairs.
Marketing and advertising your rental property effectively will help attract potential tenants and avoid vacancy periods.
Know your rental property’s target market. The location, property type and number of rooms are the most common indicators of your target group. For example, studio units in business districts are suitable for single professionals, while townhouses near schools are great options for families. Knowing which market your property caters for will help you focus your advertising and marketing strategies for the right market.
Since location is a primary factor, check nearby schools or offices to see whether there are partner programs or incentives you can offer to attract students or employees to rent your property. If you own an apartment building or row of townhouses, offering cash incentives or rent deductions as incentives for referrals can help you keep and get new tenants.
Don’t underestimate the power of advertising. Try placing an advertisement in the classified ads section of your local newspapers. People who are really looking for places to rent actively peruse these pages. If your property seems to be a right fit for them, you may just gain a new tenant. Alternatively, you may also take advantage of social media and online services to place rental ads.