How To Start Out In Private Rented Sector
If you are looking for an excellent business opportunity with the least amount of risks, look no further than private rental properties. Despite the current financial crisis the world is experiencing, the private rental property market still remains to be the safest place you can put your money. With a little property renting advice, you can earn a huge return on your investment over a short period of time. Here are simple tips and hints to help you start out:
1) Recognise That Being a Private Landlord Is Business
Being a private landlord is very different from being a private homeowner, it is a business and you need to treat it like that. Most private landlords err in operating without a proper business plan or strategy. Understand that this type of investment is not a hands-off neither is it just a passive income stream. Private renting requires time, certain skills as well as involvement. If you have no idea how to draft a proper business plan and how to create a strategy that can work for you, consult a professional who will be able to help with private renting advice first before you start out. Apart from private renting laws, this person should coach you how to avert risks, tackle competition and even how to reduce costs.
2) Begin Small
One of the smart pieces of property renting advice is to start small. Professionals suggest starting with a single tenant to check if the business really works for you. Beginning with a single household or tenant allows you to get a feel of the bookkeeping, maintenance as well as other tasks that are involved. It’s also important that you find a good first tenant otherwise if you choose someone who gives you trouble, you might end up giving up thinking that private renting isn’t for you when the real problem is the tenant.
3) Figure Out The Right Rent
Rents vary considerably from place to place. A unit similar to yours located somewhere may cost more or less due to a number of factors including location. Know that if you charge too highly, nobody will be interested in your property whereas if you settle on very low amounts, you will lose a lot of revenue because your asset is underused.
4) Do Not Shun Tenants on Housing Benefit
Although the whole question of accommodating housing benefit tenants is a tricky one, there are many excellent tenants on benefit. Most private landlords are hesitant to take in housing benefit renters because they have less income, which makes it harder for them to raise rent. As has been mentioned, there are few that are excellent to work with. If a potential tenant of this nature reaches out to you for his/her housing needs, do not dismiss them. The best thing you could do is to assess them first to see if they have adequate sources of income to help them raise rent. Do not buy into the common misconception that all renters on housing benefit are needy and difficult to work with as a private landlord. Private renting DSS is equally profitable.