Renting your properties out is a legitimate way of making a passive second income. It is passive because you don’t really have to do anything to earn the cash beyond your basic landlord duties. There are certain tips and tricks however that can make the whole process easier, especially if you are buying to rent. You may have already considered all there is to consider, but these points can spark ideas and help you remember other key points that need to be well thought through.
Buy To Let
If you come into a property through inheritance, consider selling it and then buying another property to let out. By doing this you can target something more pertinent with a better outlook, meaning you’ll be able to charge a little more money. Do your research, check out the local markets, and even overseas markets. Invest in whatever real estate you think you can make good money on. At the moment the Palm Beach real estate forecast is looking good, so check out people selling due to the strength in the dollar. You need to be aware of forecasts and sales, look at money fluctuations. You need to first get a good deal on the property you’re buying but also ensure it is a good property to let out and that you’ll get a good monthly rental. It can sometimes be hard to tick both boxes but it is possible.
Get The Right Renters
Once you have your property you of course need to find renters. This isn’t as easy as you think, you need to ensure you and they get along. To get the renters you want you need to style the property appropriately. If you are avoiding young or student renters give it a premium finish which could price most of them out and attract families or professionals. You can choose the type of renters you want to ensure the relationship is a good one. Do background checks, ensure they can handle the money side of things and be able to pay you monthly. If they don’t seem reliable then don’t go ahead or you could end up chasing them for money.
You need to ensure you are properly covered. First, you need to charge a bond. The bond will give you money which you can use to fix the property. If there is something wrong with it that the renters have caused you have a right to hold it when they leave and use it to fix the property up. Some landlords also like their renters to pay the first month up front, which covers all kinds of issues and protects you. You also need to ensure you get good landlord insurance. This covers you in serious issues, for example, if a renter ruined your property. It sounds far fetched, but it does happen. It can cost a fortune. You do need to find one that suits your needs as a letter, for example one that covers all of your properties and it can be expensive, but it can get you out of a bind.