Letting real estate seems like a sure-fire way to make an income as a real estate owner, but the possibilities come with certain considerations. The simple fact is that not every property (or every owner) is cut out for the letting world, at least not at present.
Timing
Unfortunately, the biggest obstacle to property letting may be entirely out of your hands. As with any business endeavour, it is important to remember that the market needs to be favourable to succeed. And make no mistake, real estate letting is undoubtedly a business endeavour. To ensure that your property finds the best tenant, it needs to be on the market at the right time. From large beachside homes to student accommodation, certain properties only do well at certain times.
Duration
A continuation of the time-related consideration arena is the duration of your lease. The length of your lease will greatly influence how you approach your letting experience. Short-term leases, such as holiday rentals and B&B-type rentals, often allow property owners the benefit of increased profitability and higher rent. At the same time, they also come with erratic occupancy and the risk of untrustworthy tenants who do not care about the state of the property after they have left.
Long-term leases offer property owners consistency and reliability in rent and occupants. The vetting period for long-term leases allows property owners to find the best tenant with whom they will be able to build a long-term rental relationship. Finding the right tenants for your property is another vital consideration that may make or break your letting experience.
Responsibility
While letting property may be a business endeavour, it is also a personal adventure in which you will have to invest much of your time and attention. The simple truth is that not everyone is cut out to be a landlord. While it is true that you can enlist a real estate management agency to oversee all the daily requirements of your property, allowing you to benefit from the rental income, even then, a certain degree of personal investment is still needed to ensure that your investment is managed as you see fit.
If you have given careful thought to these considerations and are ready to embark on your letting adventure, make sure to get in touch with CMM Attorneys to get your rental contracts drafted according to your wishes to ensure that your investment is all you had hoped it would be.
This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your legal adviser for specific and detailed advice. Errors and omissions excepted (E&OE)