Even if you’ve already purchased a home for yourself, investing in a second house could prove to be fruitful, as there is many a reason to purchase a home in 2017. One such reason is the steady rise in rental yields happening across all the main segments of real estate, especially the residential segment. Managing to make your home more tenant-friendly is only completing one-half of the challenge; the real challenge lies in picking the right tenant out of all the applications you have received. So, how do you do it? By creating a checklist and a questionnaire of course! Here’s a handy guide for homeowners to get the right tenant.
Do a background check
Just like a house, no two tenants can be the same. All the prospective tenants that have paid a visit to your home have done so only after getting impressed by the way you’ve set up your home. Similarly, establishing a mutual understanding with your tenant over his/her likes and dislikes as well as doing a quick background check is essential before you hand over the keys. When you have a good rapport with your tenant, it helps to increase further your reputation as a homeowner among other home seekers looking for rental spaces.
Make certain that the rent is affordable
A crucial factor that may have attracted interest among tenants to your home is the rent rate. Nowadays, a lot of tenants seek out homes solely on the basis of rental rates, so pricing your home right for rent is important. Even after a tenant approached you, you still need to make it doubly certain that he/she can afford the rent. You tenant is likely to re-negotiate rental amounts, so it’s best to have a serious discussion over the same and conclude with an amount and payment due date that is best suited for both you and your tenant.
Choose tenants that will stay longer
One sure-shot way to maximise your rental yields is to choose only those tenants that are likely to stay for longer periods in your home. Having a stable tenant ensures you get a steady flow of rental income, and also saves you the trouble of searching for a new tenant too soon. It is best to clarify the stability quotient of your prospective tenants during the first meeting; this will give you a better idea as to how much rental income you will gain and when best to start advertising your home again.
Space available for rent
A common practice among homeowners looking to rent out their homes is to avail living space for more than one tenant. This is especially true of homes that are situated close to college campuses and workplaces, where the majority of tenants constitute of college goers or young workers. Depending on the size, locality and overall rent rate, you must carefully decide your target audience and advertise your home to them. In cases where you feel your home could occupy more than one tenant, you can ask the current tenant to send out a good word, effectively reducing the rental rate per head.
Advance deposits are means of ensuring your home from your tenant; this must be negotiated before your tenant occupying your home and depends on how long he/she is likely to stay. However, each state has varying advance deposit rates, so educate yourself and your tenant over the rates before settling on an amount.
If you are looking for a second home to be used strictly as an investment for rental yields, pick from the plethora of living spaces designed by Radiance Realty– a highly sought after real estate developer that is renowned for building top-quality apartments and villas.
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