Ready to Rent Out Your Property? These 7 Tips Might Help!

Ready to Rent Out Your Property? These 7 Tips Might Help!

Are you planning to rent out your property? You might be looking for some extra income, wanting to clear a debt, or seeing it as a means to hold on to the property until the real estate market improves.

But it’s not that easy – You must ensure the property is well-maintained, well-advertised, features a competitive price, and is in a move-in ready status for tenants.

If you reside in a tourist-friendly or commercial area, renting out your home might not be as difficult – But if that’s not the case, finding the perfect tenant can be difficult.

In any case, here are 7 important tips to prepare your property rentals for the local market.

1. Get Landlord Insurance

First and foremost is having reliable landlord insurance which will shield you, the landlord, from specific things that a regular homeowner’s insurance wouldn’t. These include potential lawsuits, damage to the property caused by the tenant or a third party, and any sort of liability.

Professional insurance providers or a property management firm can help with landlord insurance and answer specific questions.

Also, in certain cases beneficial to the landlord, the tenant can get a renter’s insurance that covers them in case of lost property.

2. Hire an Accountant

You’ll need to hire an accountant because once you begin collecting money by offering a product (your house), you need someone to tactfully track your income and expenses. You must also ensure that you’re abiding by the proper requirements and reporting everything to the government.

You can also consult with a Certified Public Accountant (CPA) before you rent out your property and ask them whether you should be aware of anything to help you get started.

3. Review the Lease Agreement

Hire a professional attorney to review your lease agreement and ensure everything is in order and you’re covered. Ideally, consult an attorney that specifically handles real estate law so that your lease particularly caters to your property.

4. Decide Rent

It is important to settle on a market competitive rent that doesn’t undervalue your home, and also makes it feasible for tenants.

A rule of thumb is to fix your rent at a maximum of 2.5 percent to 3 percent of the total value of your home.

5. Get the Residential Rental Move-in Ready

Tenants always notice minute details, so make sure to take care of them and leave a strong impression. Scan your house and enlist all the areas that require any repair, replacement or any sort of maintenance before a tenant moves in. These might include lights, furniture, carpets, garbage disposal, bathroom fittings, wallpaper, etc.

Survey your house every few days before a tenant moves in. Ensure there isn’t any dust or debris lying around once a tenant visits to survey the property. Also, focus on the landscaping. Make sure the grass is cut and weeds are removed – All this helps you leave a good impression.

Remember: The first impression a tenant makes of your property is extremely important.

6. Market Your Property Effectively

Now that you’re ready to rent out your home, the next step is advertising it on the market. Make a list of the most appealing and marketable aspects that will ‘sell’ your home; commonly marketed features include a washer and dryer, air conditioners, storage room, and garage.

According to experts, certain words and adjectives help residential and commercial rentals get a tenant faster. Make sure to use any or all of these IF they apply to your home:

  • granite
  • state-of-the-art/modern/latest
  • stainless steel appliances
  • vaulted ceilings
  • maple
  • gourmet
  • hardwood floors

Once you’re done, post an ad on reputable real estate websites and in local newspapers.

You can also hire some real estate agents to help you rent out your home; however, these agents ask for commission once they find you a tenant. Moreover, a property management company can handle all the legwork for a reasonable fee generally 8 percent to 10 percent of the monthly rent.

7. Research and Shortlist Potential Tenants

Last but not least, is to shortlist potential tenants. Ask them to fill out an application form that inquires their basic information: name, employer name, salary, any previous landlords, reputable references, etc.

You’ll also need their social security number and signed consent to check credit reports and any history of criminal charges (state and local records) – An accredited agency can also do this as long as you follow the procedures of the Fair Credit Reporting Act (FCRA).

Other important paperwork you’ll require includes:

  • move-in documents
  • receipts from the tenant when they pay rent
  • move-out documents

For any further inquiries regarding renting out your home, or any other property management related queries – Feel free and reach out to Skybridge Property today!

The Skybridge Property Group is a market leading property management firm. To learn how we can help you, call us at 909-610-9780.

The Ultimate Guide to Craft a Concrete Lease Agreement

The Ultimate Guide to Craft a Concrete Lease Agreement

Thinking of renting commercial/residential property? It’s time you learn to draft a lease agreement. It is a detailed legal document intended to protect your basic interests, investments, and your tenants. In short, it is the foundation of cost-effective property management.         

When drafting a lease agreement, you must ensure that all the terms adhere to the landlord-tenant regulations in your region. Using the right resources and support, you can confidently draft a standard lease agreement.

So what are the key points of a solid residential or commercial lease agreement, you ask?
Here are the key aspects all landlords must include:

 

1. Start and End Date of Lease Agreement

Despite being obvious and one of the first things that come to mind when drafting a lease agreement, many landlords forget to state the start and end date of the agreement, known as the lease ‘term’.

Based on your requirements, you can draft a short-term rental lease agreement or a long-term agreement.

Missing this important clause in the agreement results in dealing with a ‘holdover tenant’ who refuses to vacate the rental property after the lease term has expired, and nobody wants to unnecessarily deal with evicting a tenant.

 

2. Rent-Related Details

Whether it’s a commercial or residential lease agreement, the second most important thing is the amount of monthly rent the tenant has to pay. Moreover, you should also include other rent-related details, such as:

  • Due date for payment of rent every month
  • Grace period and amount of late fees
  • Acceptable modes of payment (check, bank transfer, online transfer)
  • Charges on bounced checks

 

3. Security Deposit Terms

Security deposits are important to cover any possible damages or problems caused by the tenant after returning the property. A tenant might believe the property is in good condition when vacating it, but the landlord might think differently.

To avoid any potential misunderstanding and the consequent trouble, include the following terms about the tenant’s security deposit in your lease agreement:

  • Exact amount of the security deposit
  • Terms and conditions the tenant must fulfill to obtain a full refund
  • Terms and conditions under which the landlord may use some or all of the security deposit

 

4. Names of All Adult Tenants

It is extremely important to include the names of all the adult occupants in the residential lease agreement. Some landlords only mention the name of the person signing the agreement, but this is not recommended and may lead to problems at a later stage.

For example, if you’re struggling with nonpayment of rent and you cannot demand it from other occupants, since their name isn’t in the agreement!

 

5. Subletting Permissions

It is important to mention whether you allow subletting your rental property. If it is permitted, make sure you devise a clear policy with straightforward rules. For example:

  • The right to reject/accept the sublet rests with the landlord
  • The same qualifying standards hold for the sublet as for the other tenants

If you do not permit subletting, clearly mention it in the lease agreement. Also, notify your tenants before they sign the agreement to avoid any potential consequences.

 

6. Pet-Related Permissions

Similar to subletting, you can permit or prohibit animals on your property in the residential lease agreement. Have all tenants sign a pet agreement to avoid any future misunderstandings, just in case they decide to get a pet later on.

Here are some important terms to include in the pet agreement:

  • Types of pets allowed
  • Requirement of approval from the landlord before keeping any pets on the rental premises
  • Mandatory for all pet owners to have the required licenses, identification, and vaccinations
  • A pet fee; is for any damage the pet may inflict on the property

NOTE: these rules will NOT apply to occupants with service pets.

 

7. Landlord Visiting Rules

A landlord must respect the peace and privacy of their tenants; you can’t just enter a tenant’s unit whenever you want.

That’s where landlord visiting rules come in, stating clearly the terms and conditions in your commercial lease agreement under which you can visit your tenant’s unit. These can include:

  • Inspection
  • Showing the unit to future tenants, lenders, or buyers
  • As per official court orders
  • Under suspicion that the tenant has abandoned the unit without notice

Moreover, it is important to notify the tenant at least 48 hours ahead of a planned visit, and an appropriate time must also be considered, most suitably between 8 AM and 5 PM.

At the end of the day, a lease agreement is meant to protect both, the landlord as well as the tenant. You just need to ensure that the document is legally thorough and flexible to safeguard your property, rental income, and formulate positive relations with your tenants.

For any further inquiries regarding lease agreements, or any other property management related queries – Feel free and reach out to Skybridge Property today!

Key Essentials of Property Management

Key Essentials of Property Management

Property management might seem like a relatively easy task, but anyone who owns real estate will tell you otherwise. Property management involves major risks, and that’s why individuals and firms are always looking for ways to ensure a smooth property management workflow.

This article focuses on key property management basics that everyone who owns or deals in property management must master.

But before diving into that, let’s take a closer look at the importance of effective property management. 

The Importance of Property Management

As we said, the real estate industry can be quite tricky; slight mishandling of data or inefficient workflow management can very easily wreak havoc. That’s why effective property management and knowing how to strategize are critical.

Also, staying in touch with the latest developments in technology and otherwise is essential. A professional property manager understands that staying in touch with the ongoing trends in the industry is ideal for lowering potential risks and moving ahead.

Fundamentals of Professional Property Management

Here are 7 key essentials that property managers follow for a smoothly-driven real estate business.

1. Proper Data Management

The most important aspect of property management is managing data securely. Reliable property management solutions can assist in handling customer profiles, information about sellers, properties, and more. They help store and retrieve large chunks of data and support agents and customers to find suitable properties within specified areas.

Moreover, property management solutions offer synchronized solutions to store all manual data-related tasks by syncing their database and portal. Such unified solutions help property managers handle marketing, sales, real estate listing, and lead funnels from a sole platform without having to switch between different tools.

2. Managing Listings

Property listing features are another very important aspect of property management. If property listings are flawed, prospective buyers cannot access the listings they want.

Property management technology allows comprehensive categorization of the property giving interested buyers a quick overview. This includes:

  • Type of property
  • Number of rooms and bathrooms
  • Availability of garage
  • Availability of balcony
  • Other amenities

A property manager must manage these listings along with sellers, brokers, and agents. They should also include additional features like add, delete, edit, approve, and reject properties based on defined parameters.

3. Collecting Rent

The most common ways to collect rent include:

  • Physical cash collection
  • Credit cards
  • Checks
  • Money orders

Even though physical cash collection is quite time-consuming and requires effort to arrange the right amount of money at the right time, the most obvious inconvenience during rent collection comes from personal checks. This is because checks might bounce, often leaving a huge fee that the landlord eventually passes to the tenant.

This is why an online rent collection system should be the preferred method of rent collection. It is a secure payment method solution featuring secure and integrated payment management options.

4. Property Tours

When buyers shortlist properties the next step is scheduling a tour, preferably a physical one. However, the recent pandemic has shown us the importance of virtual tours which can also help buyers better understand and explore properties. This is where efficient tour scheduling comes into play.

Rental property management tours must easily be integrated into a physical or virtual calendar in your property management system, enabling buyers to easily confirm availability and book a tour without having to contact anyone and be put on hold.

5. Sharing on Social Media

You must’ve noticed that we’ve been stressing about using technology in the previous points. That’s because nowadays, using the latest software and providing social media sharing has become more of a necessity and less of an option.

Hence, use different social media platforms such as Facebook, Twitter, and Instagram to display and promote your real estate listings. This way, potential buyers can conveniently access and browse property information, and also share it with others on their social media profiles.

Professional property management also involves providing a location guide when displaying properties on social media. This will help buyers analyze the neighborhood as well. Share a comprehensive explanation about the surroundings, like the nearest landmarks, famous malls, etc., that will help provide a better idea to prospective customers.

6. Simplifying Means of Communication

Making communication easy through omni channel communication (providing various options to buyers to reach you) facilitates property management using a single interface.

Select a property portal that enables you to stay in constant touch with prospective buyers in real-time via multiple modes of communication. This could include:

  • Integrating a ‘live chat’ option for clients to answer their concerns and questions
  • Forward customer contact details to various CTAs allowing buyers to  interact easily

7. Using Analytics for Empowering Your Business

And the last essential element that property management real estate owners abide by is constantly staying updated about current trends. Tracking analytics helps detect effective marketing strategies and potential roadblocks.

You can hire a tech solution provider with a well-arranged admin/customized dashboard that allows setting and saving quick links to widgets. This helps monitor recent activity, counter block, etc., for your designated properties.

Skybridge Property Group is leading the contactless revolution in property management. To learn how we can help you, call us at 909-610-9780.