increase rental income

The financial crisis and the tighter budget caused by it arouses in people the need to discover new ways to earn money. For those who have a stopped property, either for housing or for summer holidays, complementing the rental income is a good option.

This is also true for people who do not yet own the property but have a stopped resource, ready to invest. Depending on the financing plan and the amount available for entry, it is possible to pay the installments with the rent received and still use the rest of the amount for other activities.

But the rental of a property is a process that requires attention, mainly because, in general, landlord and tenant do not know each other. Here are some tips to make renting your property a good deal for you:

Be careful with the contract

If you are renting your home or apartment, you are required to make a contract. This goes for both vacation rental properties and housing. The contract is the instrument that celebrates the intentions of the lessor and the lessee and ensures that, during that period of validity of the rent, you will be backed by what the lessee has signed.

The contract must be complete. It should contain information such as the term, payment terms, monthly amount and the form of adjustment. The conditions in which the property is being delivered, the data of the lessee, the lessor and the guarantors must also be expressed.

The contract must be signed by all involved and drawn up in a notary public.

Demand guarantees

A rental contract, no matter how well done, is not able to prevent the tenant from going through difficult times and facing difficulties to pay the rent due. But you need to receive, after all, your property is also your source of income.

So you need to require the tenant to provide assurances that if he does not pay, someone will take over the debt. The most common is that guarantors are elected. You must demand that there are at least 2, with income greater than 3 rents and, at least 1 of them, with the paid property.

Other modalities that can be offered are surety bonds and capitalization bonds, offered by banks and finance companies.

Make it clear who bears the expenses

An important part of the rental agreement is the expenses of the property. The bills for consumption, conservation and use of the property must be paid by the lessee. Then come the condominium, water, electricity, property tax, etc.

For the landlord are the payments for structural works, improvements to the property, valuation in general. In the case of the condominium, the lessee pays the fee, but the lessor is obliged to pay the reserve fund if any.

Attention in delivery

Do you remember when we said that the contract must explicitly bring the conditions of the property before the lease? Well, this is very important, as you should receive your property exactly the way it was delivered when the contract ends.

A good tip is to take pictures of the property and attach them to the contract so you can make a comparison at the time of delivery.

By following these tips, you will increase your rental income with no headaches.

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