To put you in the picture,  the blog JoAnn writes on,  is a great source for free or low cost resources….. free and low cost are never bad ideas!

Her post titled “Online Resources for Real Estate Properties Research” will include a number of areas to investigate if you are serious about trying to build a rental portfolio.

I am sure her suggestions will be a useful addition to the information found on this blog, so watch out for later this week when her post goes live! 

Short term Holiday rentals are not so common in North America, but are popular and widely used throughout Europe.

This type of property can form a valuable part of your rental portfolio, and produce cash flows which can assist your business.

A mixture of long term property lets for consistent steady income with short term holiday lets to take advantage of “spikes” in demand for rental property at different times in the year,  is an ideal way to build a rental portfolio.

Major difference of a holiday let compared to a hotel

The major difference between a hotel and a holiday rental is the fact that you have access to the entire space being advertised,  which includes a kitchen / cooking area (including all utensils),  sleeping areas, a lounge,  a bathroom with bath and / or shower and a WC.

Depending on the size of the holiday rental, you may also have extra space such as a hallway and access to a garden or a balcony or a patio.

This is a very general description of Holiday Rentals, and will not cover every type of holiday rental that is available.

Who does this type of accommodation appeal to?

Tourists

Obviously tourists who want some space without having to use a hotel are prime candidates.

Travellers

You also find travellers on business want a place to stay for maybe 1 week a month, and they find this type of holiday rental accommodation much easier to live in, and the costs compared to a hotel make it very attractive.

Companies

Companies sometimes need to have a base for visiting personnel,  and they find a “Corporate” lease with a holiday rental apartment is more cost effective than using hotel accommodation,  and more convenient, as they know the property will be available at prearranged times of the year.

This can then be taken further, with the occupants having the opportunity to keep costs lower than hotel / restaurant costs, by shopping locally and cooking their own food. This can result in substantial savings compared to hotel and restaurant costs.

Living in this type of accommodation also gives the occupants more opportunity to find out about local life and culture.

The 3 big advantages of a holiday rental to the customer include

• The fact that you have complete independence in the property, it is like your “home” and your own living space while you live in another country.
• Costs of holiday rental accommodation vary, but normally doing a straight comparison with a hotel will immediately show you the savings to be made by staying in a holiday rental.

• Sometimes the price of the rental is per person, and sometimes it is per day, and sometimes it is a combination of the two.

Normally, the longer you stay, you will find the price per day reducing.

The 4 big advantages of doing a holiday rental for the owner of the property include

• The fact that the property is filled on a regular basis when properly marketed
• Because this type of rental competes with hotels, the owners can charge more than the rates for a 6 month lease, whilst still keeping below the rates per day offered by hotels.
• The property is regularly checked and any problems should be quickly spotted and sorted to prevent lengthy “empty” periods.
• When special Holiday periods or Special events occur, it is possible to increase rates to reflect the demand for the property during these popular times (you cannot do this with a long term rental)

The 4 holiday rental Cleaning requirements

1. The property must be kept clean all the time. Whilst guests are in the property it is expected that the guests will keep the property clean.  To ensure that the property is ready for the next guest(s), the holiday rental agreement  should include a paymenty for the cleaning service to prepare the apartment for the next guest(s).
2. The minute guests leave the property; it has to be cleaned to an acceptable standard before the arrival of the next guest(s).
3. It is normal to vacate the property mid morning and accept new guests mid afternoon, giving a 4 or 5 hour “window” for cleaning to be carried out.
4. A holiday rental should be fully serviced, i.e.; bedding linen and towels should be changed on a regular basis whist guests are in the property, and all bed linen and towels must be  renewed before the arrival of the new guest(s).

Cleaning Service

This should be made available during the time guests stay in the property, and should also be in place to ensure the property is quickly made ready for the new guests.

The cleaning service for the holiday rental should also include access to laundry facilities.

7 things to check when making your holiday rental booking

• Find out exactly where the property is, and how easy it is to access with the use of public transport, as well as your own car, or a hired car..
• If the property is in a remote area, you may have to consider either taking your own car, or hiring a car whilst staying at the property.
• Check when the payment for the holiday rental must be made, and how much deposit is required.
• Find out if the payment for the apartment includes the cleaning service which is used to prepare the apartment for the next guest(s)
• Because so many things can happen between you booking the apartment and actually arriving, be sure to read the cancellation policy, and find out how much notice must be given to ensure you get your deposit back.
• Be sure to ask if the price you are paying includes the costs towards heating, lighting, energy costs and TV / Internet access.
• When making your booking, ask the owner to confirm they have public liability insurance cover, and should a problem occur with the accommodation, ask what support will be made available to you to ensure minimum disruption to your holiday.

Places to look for holiday rental accommodation

The obvious place to look is through classified advertisements in papers local to the area you plan to visit.

This can be done online through many classified sites just by entering the area / city you wish to stay in.

If, you wish to stay in a different country, as many people do, it is easy to do an online search with a search engine like Google or Yahoo.

For example, say you were you planning to stay in Vienna, a popular search term on the internet would be “ Holiday rentals Vienna”.

Of course you can change Vienna to whatever country or city you wish to visit.

The results of the search should produce a vast choice as many private owners tend to advertise this way.

Many private owners have their own websites with all that you require to make a booking.

In some cases, property owners go out of their way with their websites, and include sections to help you find flight booking sites, train booking sites, car rental sites and even travel insurance sites.

This complete package helps visitors quickly and easily makes all the arrangements they need online, in a safe and secure environment with all the protections that internet booking provides.

This ensures that visitors can make a complete booking with the least possible hassle.

You often find such sites also include photographs and guides to places of interest, local restaurants,  banks,  shops  and what local events are happening when you visit.

The ability to have access to a robust,  efficient and easy to use system  for obtaining potential tenant / renter  references is a fantastic tool for landlords … it avoids wasting so much time trying to spot the problem tenant / renter,  and gives  American landlords the  protection their business needs.

So much to do  ..  so little time!

Over 75% of rental company’s and landlords either do not have the time available to carry out a comprehensive credit check on their potential tenants,  or they just plain don’t know what to do to get a proper check done on their potential tenants / renters

Does this sound a bit like you?

You can be an independent rental owner or a small property management company.

You want access to the same comprehensive databases and powerful analytical systems used by large commercial property management firms.

You want to gain access to these powerful referencing systems instantly

You want easy to use, instant online access to a referencing service that allows quick payment by either yourself or the applicant.

The Solution

A major player in the referencing market called TransUnion SmartMove can give you the answers to your worries about potential new tenants

All you do is quickly create an online account by consenting to the electronic agreement sent to you by the TransUnion SmartMove …. Now you are in business!

Why will this system work?

With expertise in 25 countries spread over five continents, TransUnion SmartMove knows how to develop local relationships to increase their service to you, the landlord.

TransUnion SmartMove regularly consults with local legislators and local businesses to increase awareness of the central role that credit reporting plays in both stable,  known economies,  and emerging economies.

This benefits landlords directly by ensuring rental businesses can quickly screen tenants and, most importantly, quickly weed out the potential problem tenants.

TransUnion SmartMove provides results within hours.

500,000,000 consumers is a great recommendation!

TransUnion SmartMove has experience of maintaining credit histories for an estimated 500 million consumers worldwide

TransUnion SmartMove’s criminal database is continually updated and is available 24 hours a day, seven days a week.

Is it that easy?

Yes!  The system you get instant access to, is designed specifically for independent rental owners and smaller property management groups.

It  combine powerful analytics with a comprehensive database of credit and criminal background information to offer you the same technology used by the larger property management firms in an easy-to-use, cost-effective solution.

What is it you will get?

You will have access to the industry’s first web-based rental screening solution.

What is the process?

The referencing is all done online.

You simply enter your prospective tenant’s / renter’s email address into the system…  an electronic request is immediately sent to the prospective tenant / renter asking for their permission to proceed, and verify their identity.

You, the landlord, are then sent a comprehensive, reliable screening recommendation and results direct to your account.

You can now make a reliable leasing decision backed up by the solid data and predictive scores provided by TransUnion  SmartMove.

The process in America is quick and comprehensive!

TransUnion Smart Move has full access to the following referencing databases which are essential if you want to produce a comprehensive and accurate referencing report for anywhere in America:

• America’s most wanted
• FBI’s most wanted
• More than 15 terrorist databases
• National; Sex Offender Public registry
• Us Marshals Drug Enforcement Administration
  • U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)
  • U.S. Secret Service
  • U.S. Customs and Border Protection (CBP)
  • U.S. Office of Foreign Assets Control (OFAC)

I would say these are 9 great reasons to be confident in the accuracy of the report.

Protect your business and your investment

TransUnion SmartMove helps you chose, the most qualified tenants by the following steps

• Gathering of credit data: TransUnion SmartMove looks at lines of credit provided by financial institutions, collection accounts, bankruptcy proceedings and other public financial records are all made available for the screening system.

• Additional risk factors— TransUnion SmartMove then accesses comprehensive criminal background data and also examines income-to-rent ratio, payment histories, criminal, terrorism and fraud databases.

• Advanced analytics— TransUnion SmartMove now applies highly predictive modelling to the collected comprehensive screening data to determine the risk level for an individual who wants to rent one of your properties, or for a group of applicants wanting to be your rental tenants.

• Credit report—TransUnion SmartMove provide you with an easy-to-read credit report,  which  highlights specific tenant risk factors.

• Tailored recommendation—using proven credit data and advanced analytics, TransUnion SmartMove provides a simple, straight-forward leasing recommendation based on your specific property’s risk criteria.

What do landlords receive?

• Landlords are provided with immediate access to tenant screening tools that leverage one of the largest credit, criminal and eviction databases in the industry.
• TransUnion SmartMove gives independent property rental owners access to the same tenant screening used by the largest property management groups

What do Tenants / Renters receive?

TransUnion SmartMove gives renters /  tenants the ability to apply for a lease while protecting their personal identifying information.

Tenants / Renters gain the security of providing their personal information directly to TransUnion Smart Move —in a safe and secure online environment.

When they use TransUnion  SmartMove, they provide their Social Security number directly to TransUnion Smart Move —not to an unknown landlord.

TransUnion Smart Move verifies their identity and provide the landlord with a leasing recommendation, credit report and criminal history.

The landlord does not see personal identifying information such as Social Security number or bank account numbers.

The system used means that the potential renter’s / tenant’s sensitive information remains safe with TransUnion.

Plus, the renter’s / tenant’s credit score is not impacted when they use TransUnion SmartMove.

This is unlike when a landlord or lender retrieves your credit report,

TransUnion SmartMove lets the renter / tenant be the one to initiate the request for their own file to be sent,  making it a ’soft hit’ on your history, which doesn’t impact your credit.

Simple and transparent
There are no monthly service charges, set-up fees or other hidden costs with TransUnion SmartMove. Landlords simply choose whether to pay for the screening themselves or enable the applicant to pay directly.

Standard Pricing gives such a lot

For the standard price of $25 the landlord receives:

• Credit-based leasing recommendation/security deposit recommendation
• National criminal report
• Renter fraud warnings
• Automated renter identity verification

For an additional $5, the landlord may also receive:

• Immediate access to a credit report (a complete report formatted for readability while still keeping the renter’s personal data private)
• Viewable credit score
• Renter fraud warnings
• Detailed rental address history

Cut costs and Save Time!

TransUnion SmartMove definitely are at the cutting edge of computer technologoy when it comes to being able to deliver what Landlords and potential Renters / Tenants want in America!

The outlay involved is very reasonable compared to the hassle and heartache a bad renter / tenant can give your business.

Reduce the 75%

As already mentioned, there are a large number of people involved in property rental who do not carry out sufficiently comprehensive referencing checks on their potential new Renters / Tenants.

TransUnion SmartMove gives you the opportunity to quickly and easily access a superb online tool designed to help you reduce your stress by giving you  the ammunition you require to make a quick and sound business judgement with a complete referencing report to back up your decision.

What are the Benefits of a long term Tenant / Renter?

The question is a very easy one to answer! .. the longer your tenants  / renters stay in your rental properties,  the more consistent your monthly rental income will be.

This then lets you plan into the future with more confidence.

How to nurture happy tenants / renters

One of the best ways to keep your tenants / renters happy is to have in place a maintenance program which they are made aware of.

They can live in your rental property and know to expect maintenance tasks to be carried out at certain times in the year.

The effect of this is twofold

(1)  Your tenant/ renter feels cared for and comfortable with your style of management,

(2)  They are going to be less inclined to look “over the bridge” and want to move.

The longer your property is filled by a tenant / renter you will find a number of additional psychological factors start to have an effect.

• They become familiar with the neighbourhood
• Friends and family become familiar with the place they are staying
• They become more involved with the community
• They get a feeling of  belonging.

These factors are all latent, hidden factors which, when combined, help to make your tenant / renter comfortable and happy.

Give more reasons to be cheerful

It is part of your job to make sure that you add to their feeling of comfort by ensuring that your maintenance tasks,  which you have listed and shown to your tenant / renter,  are carried out by the dates you said they would be completed.

You have started to establish an important bond of trust which can grow the longer they stay, as long as you do what you say you are going to do.

Tenants / Renters problems become your stepping stones

You also have to ensure that whenever a problem occurs with the property (at 22.00 on a Friday night a phone call comes in about a leaking pipe, or a blocked toilet or a problem with the gas  … in fact a problem about anything!) you have to attend to it straight away!

The hassle and inconvenience of late night call outs can be mitigated considerably by having in place a list of Trades people ( see the article “Prolong the Life of your Rental Property Tenant” ) who can carry out the work timeously and to an acceptable standard.

Knowing me .. knowing you

Always make sure that your tenant/ renter can contact you either on your office number,  your mobile or by email.

Often,  if a problem is reported late in the day or late on a Friday, or over the week-end, the tenant/ renter does not expect it to be attended to until the following Monday (unless it is really major).

If you have your Trades people in place, more often than not,  they will attend to the problem before the Monday,  and you will be in the good books even more!

A problem quickly solved

Again, the very fact that a problem at your rental property is quickly solved,  means you have turned a problem into your own stepping stone of progress to acceptability. Now your tenant / renter feels even more cared for, and increasingly less inclined to move away.

What I have noted above is all common sense and not difficult to do.

Don’t slip up!

If, however, you breach the trust that you have built up, it can take an inordinate amount of extra time to repair the damage and get back to where you were before.

During a spell like this, you have more chance of losing your tenant and losing your regular monthly happy rental cheque.

So,  the moral of the story is “don’t let a slip become a landslide!”

You will have advertised your rental property, and you will be starting to take enquiries for it.

How do you screen those enquiries and sort out the wheat from the chaff?

(1)  Always put the Family First!

I always put great store in existing tenants referring a family member to us for an empty property, or a mother or father referring their son or daughter for an empty property.

It would be good to only have these kinds of tenant, however, there are many times when you have an empty property and you want it filled ASAP.

(2)  Shut up and Listen!

Firstly listen to them on the phone, and listen to background noises. If there is a lot of noise in the background it means they are not thinking about trying to create a good first impression and this sets a wee alarm bell ringing.

(3)  Gut Instinct and First Impressions

When you meet your potential new tenant their appearance and clothing and mannerisms can tell you so much and help you decide if you want them as a tenant.

Punctuality is also another factor to lodge into your overall mental impression of the tenant along with other areas already mentioned.

What you have to realise is the fact that a lot of your decisions to take a person on as a tenant come from first impressions and your gut feeling.

These two factors are very important to take into consideration when assessing a potential tenant.

(4)  Previous Landlords and Previous Addresses

Previous landlords are important, although you have to decide if what they are saying to you is truthful or just a plain convenience story to help out their friend who happens to be the applicant for the tenancy!

If their previous address is not too far away, you could pop by and just get a feel for the condition of the property.

(5)  Use the Credit Check for more than just a Credit Check!

A credit check is always, always a good idea.  They are not too expensive to carry out and you should insist on payment upfront for the reference fee,

This type of check should include a name check, an address check and an employment check.

On payment of the reference fee, you can tell them that the property in question will be “on hold” until the tenant credit / reference check results come back to you.

Payment of the reference fee shows commitment on behalf of the tenant and confidence in their ability to be able to produce a clean set of results for the credit / reference check.

(6) Is their car a Rust Bucket or a Showroom Model?

If possible try and see the type of car they have arrived in, and make a mental note as to the condition of the car.

(7)  Thinking time to change your mind

If potential tenants view a property and immediately say they want to rent it, it is never a bad thing to give them at least 24 hours to think it over.  It is amazing how often a “Yes I want it” can so quickly turn to “I’ve changed my mind”.

(8)  Is the Rent Affordable?

If the potential tenant is working they will be in a good position to pay the rent required.

If the tenant is not working, and in receipt of benefit payments of some kind, you have to make sure that these payments will come to you, and that they will be enough.

Should the benefit payments not be enough to cover the entire rental payment, ask them how they plan on making up the shortfall each month?

Vague answers mean they don’t know, or they haven’t thought about!

(9)  The Deposit

This is an important part of deciding if the tenant is suitable or not.

If the deposit is readily available, the potential tenant scores a maximum 10 / 10! This is a good indication that the tenant will be acceptable.

Having the deposit, gives you, the landlord many reasons to feel comfortable.

If the deposit is not available, and the tenant asks to pay it up over a number of weeks or months, will leave you in a vulnerable position.

What happens if the property is damaged and there is no deposit and the tenant absconds?   …   Who pays for the damage?

If you need the property rented and you only have this type of applicant, make sure you have at least one and possibly two, guarantors in place.

(10)  The Role of Guarantors

Guarantors can be former employers or family.  They will be responsible for the non payment of the rent.

This helps to keep the tenant from being late with their rental payments and having the embarrassment of knowing that we will contact the guarantors who will then contact them, and tell the tenant to pay up!

Brieff summary

Having gone through the above list and obtained the information mentioned, you have the ammunition to help you come to an important decision, which is backed up by a variety of “cross checks”.

You will not always be right with your choice, but you will certainly have every reason to believe that you are right!

If you click here you will be taken to a leading quotation and policy administration service with the following:

• extremely generous policy cover conditions.  click here
• set at very competitive premiums.   click here

The range of benefits you will have access to includes :

• Highly competitive premiums with discounts for ‘low claims’ & multiple premises;
• Comprehensive cover with high policy limits and Legal Expenses as standard;
• A wide range of optional extensions including subsidence and terrorism cover;
• A rapid quote service with access to knowledgeable Underwriters and key decision makers.

On top of the standard insurance features, you can choose from a range of optional extras to create the right level of insurance cover to suit your rental property needs.

For your Rental Property Insurance click here

The policy can accommodate multiple locations and both residential and commercial properties on a single policy and is specifically designed both  for Landlords and Buy to Let Owners who own or manage residential or commercial properties and fall into the following categories ;

• Are responsible for insuring the building or freehold;
• Let properties with tenancy agreements of six months or more;
• Let properties to residential tenants who are not DSS beneficiaries or Asylum Seekers;
• Let property for commercial use; or
• Have a mixed portfolio of commercial and residential properties.

The insurer appreciates the fact that owning and managing a let property presents its own unique set of challenges, and their policy reflects this. click here

As a landlord you will want to ensure that you are getting the right cover for your various properties.

The Rental Property policy offers high quality, competitive cover designed for landlords with the built in flexibility to cater for either single or multi-property portfolios of either residential, commercial or mixed occupancies.

Rental Property Insurance cover includes:

• Loss of Rent – limit of 20% Buildings sum insured with a 12 month indemnity period for residential properties;
• Cost of Alternative Accommodation – 20% Buildings sum insured;
• Property Owners Liability – Standard Limit of Indemnity £2,000,000;
• Legal expenses £100,000 in any one claim, £1,000,000 total cover; and
• 24 hour Legal Helpline;

You can also choose to add these great options for extra peace of mind:

• Landlords Contents including communal areas;
• Accidental Damage on Landlords Contents;
• Accidental Damage on Buildings;
• Subsidence;
• Increased limit of indemnity on Property Owners Liability;
• Employers Liability for clerical, caretakers, gardeners and maintenance people – Limit of Indemnity £10,000,000; and
• Terrorism cover.

For your Rental Property Insurance click here for cover to suit you and to suit your pocket!

Over the course of the years that you own and rent out your rental property, you will undoubtedly be faced with wear and tear of the property.

If your sole aim from the property is to achieve the maximum rental income for the least expense, the chances are that you will ignore basic maintenance tasks and wait for major problems to occur before having to pay out cash for repair work to be carried out.

The above type of approach is okay, but it certainly stores up a lot of problems which can combine and have detrimental knock-on effects further down the line in the guise of not the best tenants,  plus, unnecessary tax payments to the IRS!

Let me explain

The property fabric has a value which is your “Equity“ when you come to sell.

In order to enhance the equity in the property you want to have the lowest possible mortgage loan (or even better no loan!) against the property.

That is quite obvious; however, the value of the property can be greatly influenced by the condition of the property.

A well maintained property will command a better value than a poorly maintained property.

A well maintained property will attract tenants who are more than likely going to help you look after the property and as a consequence reduce your overall expenses in keeping the property in good condition.

Before you start to worry about the cost of repairs to keep the property in a good condition you can take heart from the fact that you will be eligible for tax relief on the costs incurred in keeping your property in good condition.

Tenant-Paid Expenses

If your tenant pays for an expense on your behalf, this is considered income… for example; he pays for an emergency repair to the washing machine.

• Make a claim

Now, you can claim the repair bill for the washing machine as a rental expense.

Services from the Tenant

If agreeable, you may agree to forgo rent from the tenant in lieu of his time to,  for example, paint and / or paper the rental property.

Let’s say the rent was $650 a month, and you agreed to waive this rent for 1 month as his costs for carrying out the work.

• Make a claim

You have to include this $650 as income,  even although you did not physically receive the money, however,  like all good stories there is a happy ending here!…  because you can deduct the$ 650 as a legitimate expense!

Improvements are not always the best treatment!

Be aware of how the IRS view repairs to a rental property as opposed to Improvements / Renovations.

What is considered a repair?

Repairs include

• Painting,
• Fixing a broken toilet
• Replacing a faulty light switch
• Depreciation
• Insurance
• Taxes
• Lawn care
• Tax return preparation fee
• Losses from causalities (hurricane, earthquake, flood, etc.) or thefts

Repair and taxes

A repair keeps your rental property in good condition and is a deductible expense in the year that you pay for it.

What is considered an Improvement Renovation?

Improvements can include a new roof, patio or garage.

Improvements / Renovations and taxes

Improvements add value to your property and are not deductible when you pay for them. .. read that again … Improvements add value to your property and are not deductible when you pay for them!

The cost of recovering the improvement / renovation costs have to be depreciated over the lifespan of the property.

Do not Repair .. do not pass go .. do not collect $ 200.00!

If you leave repairs undone, and the problem starts to become worse and worse, you may find that the repair suddenly is classed as an Improvement or Renovation by the IRS

As stated earlier, Improvements are not deductible when they are paid for … you have to depreciate the cost of improvements over the property’s lifetime.

Recap on Repairs vs Improvements / Renovations

So, with Repairs you get immediate tax relief if claimed for in time…. This can make your IRS bill so much better to read!

Whereas your Improvements / Renovations don’t qualify for immediate tax relief and your IRS bill will look worse!

The IRS does give you a certain degree of flexibility with regard to the items you can class as either repairs or improvements.

Whatever you are claiming for, you have to be able substantiate your claim by producing receipts.

It is also important to remember that money spent on Improvements / Renovations could be set against your taxable liability when you come to sell the property.

Keep good records and always keep receipts.

There are other areas to consider with regard to taxes, and these include

• Security deposits
• Mortgage expenses
• Travel expenses
• If you own a rental condominium or cooperative, each has some special rules.
• Are you a passive real estate investor?
• Are you a real estate professional?

Do your calculations and consult with a qualified tax adviser to make sure you are doing the right thing and paying the least taxes!

Prolong the life of your tenant  ..  It is not rocket science here, it’s pure common sense  ..  Trades people are your “gold dust” ..  When people talk .. others listen and believe!!  ..  Freshen up all the time  ..  Internet technology and nettles  ..  Create a website that is an offshoot of your main property rental website  ..  By now your grey cells must be working overtime!  ..  Free Home Delivery is a great add on!  ..  Now take another step!  ..  Arms & Legs!  ..  No need to think twice  ..  Why stay in contact?  ..  Stability and cheques!

Prolong the life of your tenant

Running a property rental business has many issues to address, but the number 1 issue you have to address is to fill your property, and whenever possible, prolong the life of your rental property tenant!

If your tenant is going to leave,  for whatever reason,  you are then faced with the task of filling your rental property again!

If you have taken on board the ideas in the article “Advertising ideas!” … you really should not have too much bother filling your property …. But why not totally avoid this situation happening? .. or at the very least, reduce the number of time a rental property tenant says they want to leave!

It is not rocket science here, it’s pure common sense.

Your tenants need to be treated like real human beings; they need to be contacted on a regular basis.

Any, and I mean any problems they report, about the property should really be dealt with immediately.

I cannot recommend strongly enough that to keep your business ahead of your competition, you need to have tradesmen on hand who can respond to water, gas, electric or other problems “at the drop of a hat”.

Trades people are your “gold dust”

Because you are running a rental property business, it means that you are always going to need trades people, and they know it.

They want to give you a service you can rely on….. if they don’t,  it is quite simple for you to say “goodbye” and move onto another tradesperson who is keener to make an impression,  and keener to establish a long term relationship with a firm they know will give them work on a regular basis.

When people talk .. others listen and believe!!

The knock on effect of having quick, reliable and competent trades people on hand, feeds down the line for you.  You don’t know when it will happen … but people will talk about your business

“ I called late yesterday and they were out after only 1 hour .. I was relieved to not to have to wait! “

“The water leak was sorted so quickly by my landlords’ plumber! ”

“I had a problem with my washing machine and the landlord had someone  out within 4 hours,  and they mended it there and then .. that was great!”

These are the sort of comments you want to hear from your tenants time after time after time!

Your tenant feels  important and comfortable with you, and as a consequence less inclined to look about for other places to stay if they know they are being looked after.

Freshen up all the time

Wherever possible, try to keep your property “fresh”   .. well maintained and well decorated.

There are two  reasons for doing this ..

(1)    You are maintaining value.

Whenever you come to sell your rental property, you do not want to be faced with huge costs to “get the property ready” … it’s far easier to do little tasks regularly to keep improving and upgrading your property.

(2)    Your tenant will like that!

If your tenant is living in a property that is being looked after .. they will feel looked after.  This really does add to their” comfort zone” and is another reason for your tenant to stay your tenant.

Internet technology and nettles

Grasp a nettle and you feel pain,.. but, touch a nettle carefully…. and you will avoid pain,  allowing  you to move on to bigger and better things…

Think about this for a minute.. You have a website advertising your properties… you have touched the nettle of internet technology and you can now use it without pain …  so why not take it a stage further and harness more possibilities from the internet…. and use the internet to help you grow?

Create a website that is an offshoot of your main property rental website ….

Tell your tenant that because they are your tenant, they will gain special access to your special and exclusive Online Shopping Website.

By now your grey cells must be working overtime!

Take this as far as you want.

In setting up your online shopping website, you will have affiliated with a number of big name stores …. They want the business and they will pay you a commission for you sending customers to them.

Your tenant gets access to exclusive deals and vast choices, all from the comfort of their chair in their warm house.

Free Home Delivery is a great add on!

Free Home Delivery cuts out the hassle of having to find parking and practise Olympic weightlifting as they  carry shopping bags for what seems like miles and miles!

The convenience of tapping a few computer keys makes this a great “add on” for your tenants.

Now take another step!

You can even expand your website idea further and offer your preferred trades people a spot on your website under “property maintenance”  …. Any enquiries you receive can then be passed on to your trades people …they will appreciate this advertising on their behalf!

Arms & Legs!

Now you will find this website idea developing arms and legs….  as you realise you can offer your tenants online booking for Holidays, Plane journeys, Train journeys, Car rentals……. this list can just grow and grow!

So many companies are happy to “affiliate” with you, and you can offer your tenants a service which they would lose if they left your rental property.

No need to think twice

All the above points in this article will help to create a more than convincing case for a tenant to think twice before deciding to move.

Why stay in contact?

Keeping in contact with your tenant definitely helps to prolong their tenancy.

This simple task has so many beneficial effects that will let you build a rental portfolio that consistently has tenants in situ for long periods of time.

Stability and cheques!

This stability cascades down into your pocket.

You will receive regular and consistent property rental cheques, and if your online shopping takes off. who knows where that will go!

Stable and happy tenants let you achieve a peace of mind that many property rental businesses do not have.

To help you make the right choice for your personal circumstances, I have listed below a number of the most common areas to be thought about,  discussed with your partner, your family and  with your potential landlord or rental agent.

Personal factors

The rental property you finally chose is subject to so many personal factors.  These personal factors include what your family situation is, are children, or more children planned for, is privacy an issue, is parking a problem ….etc.. The list can become quite lengthy!

Space and Privacy

A house gives you space.

Often the house will also have some kind of garden which is great if you need this space for your young children or your pets… or even both!

The outside space “garden area” often includes a driveway or parking area for your vehicle.  In fact, more and more families have more than one car, and parking within your own boundary walls may be a big incentive when trying to decide on the house that you want.

If the house is totally detached, you will have the most privacy.

Flat maintenance

A flat as a rental property means you will have low maintenance involvement.  The costs of maintenance tasks can be spread throughout the number of residents in a particular block,  and whatever the cost of a particular task,  it will be diluted greatly by the number of fellow renters in the block.

House maintenance

Obviously,  if you are renting a house,  you will have to consider the extra time and or cost requirements that will be part of your tenancy to keep the property and the ground within its boundaries suitably maintained.

It may seem trivial, but, a house has more windows to keep clean, more carpets to vacuum, more lawns to cut  and more garden to weed.

Maintenance Issues to Remember

When renting a house or a flat it is always prudent to check and confirm what maintenance you, the tenant, must carry out, and what maintenance tasks are the responsibility of the landlord, and, who is responsible for paying for maintenance.

Location and Location

A flat will give you a better chance of finding a place to stay in or near a particular prime city or town location.  Also, there is more chance of finding a flat close to your place of work.

Houses in town centres or near your work, normally tend to be few and far between, as family houses are usually found further from town centres and city centres.

Who is responsible ?

Often, if a house is being rented,  it is being rented by the owner,  and there is a good chance they are not fully up to speed on their responsibilities,  and,  the rights of the tenant.  Therefore, it is important that you, the tenant,  should know at least the basic rights you are entitled to before you sign your property rental contract.

Invasion from around you!

If you are living in a block of flats you are more likely to have infestation problems which are outwith your control.  Your flat may be clean and tidy, but infestations (like roaches or ants) may creep in from above,  below or from next door.

Heating

Normally you find that a flat is less expensive to keep warm due to the other flats in the block providing a kind of insulating effect and keeping your energy costs down.

A house will not gain the same energy saving effect.

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The information in this article will go some way to helping you make your mind up between renting a house or renting a flat.

The next article will look at lease contracts and what to look out for!

You have a number of factors to consider before you decide to furnish your rental property. **

Rental achieved

The rental achieved by letting a furnished property is slightly more than an unfurnished rental property, but often the difference in monthly rental is not huge.  You must therefore consider if the extra potential rent is worth the extra legislative responsibilities that go with furnishing a rental property.

People, who rent a flat or rent a house, often have their own furniture, or can get hold of their furniture.

A property that is unfurnished often includes “White Goods” in the kitchen .i.e .. fridge,  freezer, washing machine and cooker.

The tenant then purchases their own furnishings, which can go with them if they decide to move on to another rental property at a later stage.

(1)  Furniture suffers from wear and tear.

Before you let your rental property,  it is important to draw up a detailed inventory which notes the condition of the property,  and the furnishings before the tenant moves into the rental property.

Photographs can help quickly identify and prove any major changes in the condition of the furnishings or decoration of the rental property.

Should damage to furnishings or decoration occur during the tenancy, this can quickly be spotted by checking the inventory. You have to differentiate between wear and tear ( which happens anyway ) and damage.

Who pays for damage?

Having established the fact that an item, or items of furniture, or major changes on decoration in your rental property have occurred, the tenant should be obliged, under the terms and conditions of the lease contract, to cover the costs of repair or replacement of identified items.

The advantages of Regular inspections

Regular property inspections during the course of a tenancy means that any damage can be quickly spotted, and a quick solution put into place to return the item of furniture or décor back to its original condition at the tenants’ expense.

At the end of the tenancy, a final inspection is made and assuming all “problems” have been attended to during the course of the tenancy, the tenant will be entitled to a full return of their deposit.

The above helps to illustrate the importance of as number of factors you should consider when starting to rent your property:

• Always ask the tenant to sign a detailed inventory when they move into the property
• Always ensure the rental contract has a regular property inspection clause.
• Always ensure that the tenant pays a deposit when they move into the property.

Legislative requirements for the property owner.

I draw your attention to my article titled “Your First  Rental Property”  and suggest you familiarise yourself with the legislative requirements a landlord is under when letting a furnished rental property.

Electrical appliances .. some comments

It is important to remind you here that small electrical appliances,  like TV’s, radios, toasters, kettles and microwaves are items which tend to regularly fail because they are in constant use ( washing machines tend to be more robust)

It is up to you if you want to supply these small electrical items. Please be aware that if you supply a TV,  and the tenant does not apply for a licence,  you,  yes you as the owner of the rental property,  are responsible for the licence…. So, make sure your tenant applies for one, or you remove the TV!

Items covered under the Furnishings Legislation

The regulations apply to the following items which should have a suitable permanent label attached.

• upholstered furniture
• single beds, double beds and bunk beds
• headboards and mattresses,
• sofa beds,
• futons and other types of furniture that can covert to a bed.
• nursery furniture, garden furniture suitable for use in a dwelling is also included
• loose furnishings like scatter cushions and pillows
• non-original covers for furniture.

The following items fall “outside” these regulatory requirements

• antique furniture or furniture made before 1950,
• bedcovers including duvets, loose covers for mattresses,
• pillowcases,
• curtains,
• carpets
• sleeping bags.

If an item of furniture in your rental property does not comply with current legislation, it must be removed before the tenancy begins.

There are tax advantages to be had here!

A plus point about furnished property is the fact that there are tax benefits available for general wear and tear, and also for the cost of replacing furniture and appliances.

It is always advisable to check with a qualified tax advisor to ensure you are claiming all your tax allowances for the furniture and maintenance in your rental property.

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I hope you have found this article useful.

Next I  and will go on to cover the advantages and disadvantages of renting a flat as opposed to renting a house in the next article.

** (please note this article is referring to long term rentals and not holiday lets of 2,3 days or 2 or 3 weeks.)