Renting out your property is a sensible option provided you keep in mind the basic tips to seal a safe deal. Whether you want to be an investor in rental properties or just trying to make some money out of your second house that you are unable to sell, rental market is worth exploring albeit with caution.
Before you start looking for tenants, you should have a fair idea of the tenancy laws in your area. It will help you to reduce the risks of bitter law suits with your tenants. Make sure that you do your home work thoroughly while renting out your home so that you can ward off any unpleasant surprises.
1. Marketing your home and Choosing a Tenant
Finding the right tenant is what makes or breaks your rental plans. Make sure to perform a complete background check of the prospective tenants. It is recommended to contact their previous landlords to ascertain whether they were punctual with the rental remittances. You can gather all the information of the tenants like name, address, salary, employment and social security number to check their credit history and criminal history among others.
You can find tenants by advertising in local newspapers. However, online uae classifieds are less expensive and more effective than newspapers. You can also spread the word through your friends and colleagues. Highlight the desirable features of your house such as a washer and a dryer, air conditioning and garage , which will enhance the demand for the property. Smart marketing tips include descriptive narratives, some lively snap shots of the house and interiors and the most desirable traits of your home like for instance ebony ceiling or hard wood floors – to name a few!
2. Attract the Right Tenant
If you have properties, like apartment buildings and condos, it will be suitable for students or single working professionals; while family homes are more suitable for tenants with families. Matching the property with the right clients will ensure a smooth contract for you while the clients have a comfortable stay. Win-win
Tenants can be more attentive to even minute details about the property and can be choosy, because of the increased availability of rooms for rent in dubai. Make sure to rise up to the expectations of a good client by making your home welcoming. Spruce up the home and make sure appliances are working and in good condition. If you are letting out a portion within your house, make sure that you can secure that area from the rest of your home.
3.Protect your rights with a lease.
A written lease featuring the right obligations of both parties will ensure a fair deal. You can consult a local lawyer to draw out a fool proof agreement. It is not recommended to use blank lease templates from the internet as these may not comply with the laws in your city or cover you fully on safety aspects.
A lease should ideally have the following clauses
Lease term: You can choose from a month-to-month lease if you prefer a flexible arrangement or an annual lease that ensures more stability and assured income if you plan to hold on to the property.
Security deposit: Take a security deposit as advance rent for a specific number of months . Don’t agree for partial payments.
Rent payable date: Specify the date on which the rent has to be paid and penalties in the event of default.
List of tenants: Make sure that you have the complete details of tenants living in your property.
Pet policies: If you allow them, specify it.
Eviction terms: Let your tenants know that you have the right to evict the tenants in the event of nonpayment of rents or damaging the property among others.
Drawing up a lease will help you to stay clear of various disputes than can crop up because of misunderstanding and unclear terms in the lease. You can seek the services of a real estate lawyer to make sure that you do not miss out any vital points.
4. Hire a Property Manager
If you are living at a faraway place or remain busy to handle the additional responsibility that comes with letting out the home, hiring the services of a property manager or a property management company will be a smart move. Entrust them the responsibilities like regular maintenance, urgent repair requests and any such issues that may come up. It will relieve you of all the tension and ensure peace of mind. A right property manager can help you increase the profits and ROI from your property and make your life easier.
These companies will also help you find a tenant, which includes advertising and background checks, and managing the property. You can choose the services that you need and settle for a fee accordingly.
Renting out a home can be beneficial for both owners and tenants?, if you master the survival tips of renting out your property that can prevent potential pitfalls and help you to be well aware of your rights as a landlord all the while being nice to the tenants.