How Exactly Does DIY Work When Renting Properties?
Guest post from by Christopher Austin and PropertyTurkey.com!
Being your own boss when renting properties and having tenants can be overwhelming at times. As soon as you go down the DIY road of being a landlord, numerous issues and situations pose their head. You are in charge of keeping tabs on everything related to your properties, whether it’s maintenance, inspections, being there for your tenants 24/7. It’s not easy, but if you wish to make an extra profit, it’s the road-less-taken, and it does pay off. So how exactly does DIY work when renting properties?
No external property management
No external property management means a lesser loss of income on a monthly basis. Hiring an extra property manager can get some work off your back and let you breathe easier, but when you calculate the cost of paying him/her on a monthly basis (10% of the monthly revenue in average), you start seeing the brighter picture. Being smart and pro-active pays off big time, and having that extra load of work might not be as bad as it seems. Imagine the £26.65 x 12 months that you will pay the manager? That’s right, £319.80 down the metaphorical drain.
Ask yourself what kind of a landlord do you want to be perceived as? A strict and organized one, or a laid back and “pay me when you can” kind? It’s important to remember why you turned to DIY landlord business in the first place, and letting your tenants know that you mean business from day one can go a long way in making sure you get paid on time, in full.
Every now and then your property will become vacant – unless of course you want to buy villas in Turkey and have permanent residents – and it’s up to you to let the potential new tenants that it’s up for rental. Being out there as soon as your current tenant announces they are leaving will do you a big favor. You don’t want the property to be empty any longer than it needs to, since that presents revenue loss. The more people hear about the new opening, the more of them will want to move in, and this is exactly what you want. The bigger the number of potential tenants, the more likely you’re to choose the perfect candidate. You’re looking for the long-game. Don’t accept just anyone. Talk to them; make it a sort-of an interview to see what their plans are. The more careful you are, the better the long-term outcome.
Talk to your tenants about setting a strict inspection system so that you can keep an eye on your property. Once every three/six months is more than enough. Some of your tenants might not be crafty enough to notice a boiler leak or a window frame splitting but you are, and noticing it on time and fixing it up will cost less and make you seem more professional. This is beneficial for both parties, and you should “sell it” as such. Make sure you have two or three handy-men on speed-dial just to be on the safe side.
Follow the trends
It’s up to you to keep an eye on how the prices are moving in your area. You might not be aware of it and you’ve been charging 10% less then everyone else on the street, hence losing profit. Of course, same applies for the other-way around. Charging more than others will make your tenants uncomfortable and it might be what makes them change residence. Making friends and putting an ear out there can do you good. After all, the more professional a landlord you are, the more tenants will like you and refer you.
As a DIY landlord it’s easy to fall into the trap of losing paperwork. Make sure you have a system and keep track of all your tenants; their rents, their bills, the eventual repairs or rent over-due; it’s very important to keep your head in the game. Make sure you have info on all your tenants, copies of any important documents and payments, inspection photos and such. This is by far the easiest way to lose money, just because it’s going so good and you relaxed for a bit.
As you can see, this is just the tip of the iceberg when it comes to being a DIY landlord. We’ve stated before that you should be professional, but the fact is that DIY landlords have the most heart and understanding for the tenants for the simple fact that there’s no agencies or legalities involved; it’s just you and your people; and getting off on a right foot and keeping to your own system can go a long way into making DIY property rental a very lucrative way of doing things.
By Christopher Austin and PropertyTurkey.com!
Please let us know in the comments below if you have any questions or comments.
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