A rental property investment can be one of the most rewarding investments. Aside from providing a steady stream of rental income, which can be a valuable source of passive income, it is also an immovable asset which, if looked after, can appreciate in value over time.
A well-managed property in a good location can potentially see significant capital gains when the property is sold. Additionally, rental property ownership can also offer tax advantages in the form of deductions for expenses related to the rental against the income earned. A rental property is also a tangible asset that can be passed down to future generations.
It is usually best to invest in an area where there is a strong, and sustained demand for rentals, and to ensure that the property meets the average requirements for rentals in the area. This may result in the rental property being located in an area which is far away from where you are based, or perhaps you are renting out your previous home after you have relocated elsewhere.
A rental property should not just be left unchecked or unmanaged, regardless of how trustworthy you may think the tenant is. Seeff’s rental agents note that circumstances can change, and it is always advisable that rental property owners carefully consider whether they are able to manage the rental property themselves. If this proves to be a challenge, or if you would like to leverage maximum benefits from our rental property, it may be advisable to make use of a skilled rental manager to do so on your behalf.
Managing property rentals from a distance can be challenging, but a trustworthy property manager can handle all the day-to-day tasks such as invoicing and rent collection, payment of utilities and other services, as well as maintenance, and emergency repairs. They can also provide valuable local insights and handle legal matters.
The use of property management software by rental agents have become integral to the rental property management process. These aim to streamline communication, track expenses, and manage tenant information. It makes the administration smoother, and ensures legal compliance, all of which greatly benefits rental property owners.
Dealing with the tenant on a day-to-day basis, and maintaining an open and consistent communication channel is another benefit, and fosters tenant loyalty and compliance. Not having to deal with these daily tenant matters, the property owner can enjoy their property ownership with minimum hassles.
Positive tenant relations are beneficial to the property and the landlord. Rental agents work with tenants on a daily basis and know how to be responsive, and deal with problem issues. Satisfied tenants are more likely to renew their leases, pay their rent on time, and look after the property.
Property management agents also provide a thorough vetting service as well as a comprehensive rental agreement which outlines the terms and conditions of the tenancy, including the rent and other amounts payable, security deposit requirements, maintenance responsibilities, and dispute resolution procedures. It should be legally sound, and protect the interests of the property owner or landlord.
Making use of a rental property management solution can ensure that regular property inspections are done. This will enable the agent to spot any needs upfront, as well as the need for any issues which may require addressing with the tenant. To maintain the value of a rental property and ensure it appreciates further in value, and can attract good calibre tenants and a good rental income, it is vital to keep the property in a good condition.
Aside from ensuring your property is well-managed, landlords and rental property owners are also advised to set aside a maintenance fund to cover emergency repairs, as well as regular maintenance and upkeep, and potential upgrades to maintain the attractiveness of the property to good calibre tenants.
Landlords must also remember that just because they have a managing agent, they must still ensure they protect their investment with comprehensive property insurance that covers potential damages, liability, and lost rental income.
Seeff proudly celebrates 60-years in the property industry. We are a leading real estate brand, and offer comprehensive rental solutions which can be tailored to meet your specific needs. Visit www.seeff.com for more information or to find your nearest Seeff rental agent.