If you have just acquired a property and it is in your plans to rent it to take advantage of your investment, this article will be useful, especially if the difficulty of finding a good tenant is added to the factor of distance. With this in mind, here are seven tips for managing properties from abroad.
The first tip for a real estate investment is to choose the right property. The one that attracts more tenants, with better capital gains and that meets the needs of the public. Tips for managing properties
For example, mixed-use developments are regularly in high demand because they facilitate the day-to-day life of their residents by planning commercial and office spaces near a residential area. This can attract more stable tenants, with the intention of generating a long-term contract.
Know the landlord-tenant legislation
This point is very important, it must be studied, understood and followed to the letter. You can consult it online or with your lawyer. This type of legislation covers topics such as maintenance, advance notices, security deposits, and eviction procedures. It is essential to make clear in the lease the clauses that include specific requirements or conditions, such as that you cannot smoke or enter with pets, etc. Once the tenant signs it, it is recorded that he was notified from the beginning.
It is also advisable to be familiar with the national and municipal regulations for owners in order to avoid disagreements with future tenants.
Find out what you can about your tenants
Ask your tenants for a copy of their latest pay stubs and try to access state databases to examine their histories, this in order to corroborate their financial solvency.
Tips for managing properties
It is also a good idea to ask for references from previous owners, to find out the experience they had with the tenant and if they are a person you can trust. When you engage in overseas property investment, it is important to invest along with a reputable investment company.
Leave a written record of everything
Although oral rental agreements of less than one year may be valid, they are never a good idea. Each tenant should fill out a complete form with their personal and work information, including employer references, contact details and close relatives in case of emergency.You must also have a signed agreement detailing all the points of the lease. Many owners prefer to renew the contract month by month, to avoid problems when leaving the property for whatever reason. This may work for temporary rentals, but is not recommended for long-term rentals.
Provide your tenant with an inventory list that meticulously includes each and every item you leave in the home, and an accurate description of the condition of the walls, floors, ceilings, doors, windows, and more. Thus, before leaving the property, the tenant will be obliged to review each item in the inventory and, if any inconvenience occurs, remedy it with the owner. In the event that something is missing or broken, it can be collected from the deposit made when occupying the home.
Be good but firm with your tenants
Keeping good tenants avoids problems. As the owner, you must ensure that the property is in good condition and carry out regular maintenance. Responding to tenant complaints or proposals is part of the implicit contract to build a good landlord-tenant relationship.