In previous article, we’ve talked about the things to concern before rent out your property. In today, we will continue to discuss about what are the things that you need to concern after rent out your property. Let’s begin!
➊ Mind the overall economy
Whether to increase or maintain the rental after rent out the property, you should mind the overall economy anytime. This can be included the cost of foods, appliances, transportation, price of housing in the area and so on. If there is inflation of economy, you should consider to increase the rents to cover the property operating expenses and keep the property to generate positive cash flow to itself.
If there is a must to raise up the rents, go head to inform your tenants in advanced as most of the time they will understand the reason of the economic increase which a landlord is unable to control over such as increase of maintenance fees, tax increases, higher interest rate or any other else.
➋ If you consider to pass over your property to a property manager or property management company to look after
If you have no much time to take care of your properties or deal with the tenants, you may consider to hire a individual property manager or property management company to help you to do all these stuff. Here are some characteristics for you to choose a best/ suitable property manager or property management company to look after your properties;
➲ Their company or house (individual property manager) should near your property and able to take care well of all the complaints made by the tenants or neighbors as well as property maintenance.
➲ He/ She that you can trust on and conscientious. For example: they won’t simply increase the rents without your prior approval, able to help you to do the property maintenance at lowest costs.
➲ He/ She must be at least is quick-witted. For example, if there is leaking faucet in your property, they can arrange the people to go over to fix it immediately. He/She will be worth more than what you pay if he/she is handyman.
➌ Increase the rents
If the market conditions force you to do so, you should sit down with your tenants and tell them you’re going to increase the monthly rents. By consider your tenants’ financial status, you can choose to not to increase the rents. However, you should take note that whether the rents can still cover all of the property operating expenses such as maintenance fees, taxes, interest rate or others expenses that you put into the consideration.
Rent out your property is a kind of business, you must make sure that the business has always generate revenue to you. If you have been build a certain relationships with your tenants, it might a bit difficult to say it from your mouth, but, you still need to find a way to increase the rents.
➍ Maintain your property in excellent conditions
In order to make your property stand in the line of higher occupancy and top rents, your are requires to maintaining your property in excellent conditions.
However, don’t put the things into your property that will not giving you any returns. Instead, you should do the simple decorations such as wall painting, furniture, appliances, flooring and etc. Besides, do make sure the plumbing and electricity system are in well conditions even though the property is already rent out to the tenant. That’s why I always said that the property maintenance is very important.
➎ Build a good landlord-tenant relationship
This is very important to build a good landlord-tenant relationship. No one wants a landlord who always ask for the rents with them and don’t fix the problems immediately. Instead, you should always listen to the tenants requests and complaints and try to accommodate them as far as you can. In simple word, treat your tenants like the way you treat your customers.
➏ Collecting of rents
Request your tenant to automatically pay their rents into your bank account every each month. This practice can makes you save a lot of time as you no need to go over personally to only collect the rents. However, if the tenants always late in paying their rent, do insert a “late penalty” clause in your lease.
➐ Record all the income and expenses of the property
Practice yourself to record all of the income and expenses ledgers in spreadsheet on a monthly basis. (The Inland Revenue Authority (HASIL) will expect it) This practice will facilitate you to prepare a loss and profit statement of every each of your rental properties by end of each year.
As a landlord, there is many things to concern after rent out your property. Besides of that, you will need to understand What Is A Landlord’s Responsibilities To Their Tenants. Do visit WMA Property to get more guidelines about the tenants and landlords.