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Renting is the new “new thing” for many people. You might have heard about the word “sharing economy” or “Airbnb”.
When renting properties you can make money. But how to make money by renting?
What Should You Consider When Renting Out a Property?
What is the cost of the property?
If you are looking for short-term rentals, then your rental rate should be a little higher than the one that you can get for the long term. You can rent out the property for 6 months or one year.
Consider your expenses and the expenses of your tenants. You should also think about the cost of maintenance and repairs.
If it is too high, it will reduce your income and make you unable to meet your obligations. So, you need to find out if this cost is reasonable.
What are your tenants’ requirements?
Some people prefer to live in their own homes and some want privacy while renting others’ homes so they can avoid intrusions into their private lives.
Some people don’t mind having strangers in their homes as long as they have access to the cleanliness, security, and safety of the house and its facilities.
But sometimes renters also have certain requirements regarding location or distance from city centers, near a school or hospital, etc. In such cases, finding tenants with all those requirements may be difficult.
You may want to consider the amount of time that you spend to fulfill these needs which may affect your ability to make money.
What is the neighborhood?
When renting a house or a property, you should consider the neighborhood in which it is located. Is it close to a school, hospital, shopping center or other important places?
Are there enough other houses and businesses nearby? If not, then you may have difficulty finding tenants and they may be unwilling to pay your rental rate. This can also affect your ability to make money.
What are the security features of the property?
There are certain precautions that you need to take when renting out your house or apartment.
For example, if you are renting out a furnished home, then you need to provide basic furniture such as beds and tables, etc., which can be rented by your tenants.
You also need to install security devices like alarms and cameras to prevent any burglary or theft from happening on your property during the time of your absence.
Consider hiring security companies that provide 24-hour emergency service at night time. That way, if someone tries to break into the property they will be stopped before they reach the doors of your home.
Another thing that you should consider is whether this is allowed in your area or not. Some areas allow it, but others do not. If you live in a city like Los Angeles, you can rent out your property without any restrictions.