|Build your house and maintain its value.|
Friday, 24 February 2017
HOUSE BUILDERS’ HARDWARE AND 5 TIPS ON HOW TO OPERATE THE “SOFTWARE”.
1. Screen prospective tenants.
This however, only work when you have a reasonably big number of prospective tenants offering to rent your house. When screening on a pool of people your chances of getting a good person is higher than when you are interviewing one or two individuals. In order to get this pool you must advertise your house on media that has a diverse and large human traffic so that your property can be exposed as far as possible. This rules out media like whatsapp groups.
2. Create a lease.
A lease is useful because it contains or prescribes remedies in the event that the lessor ( landlord) or lessee (tenant) violates the rights of the other.
3. Include the security deposit.
A deposit is important because it buffers the landlord from liabilities incurred by a tenant during his or her stay at the property. This money must be paid upon assuming occupation by the tenant and is refundable less any liabilities incurred by the tenants if any. Some tenants are not as honest as they appear at first and usually disappear or run away from the debts they would have caused. If you have their deposit held in trust you will be safe from this possibility.
4. Negotiate a shorter lease term.
I prefer a shorter lease term because it helps you to make use of the security deposit before the costs of liability goes beyond the amount of deposit held in trust. Usually the deposit is only used upon termination of lease so if the tenant causes some liability to the property like municipality debts and fail to correct this problem the only thing you can legally do about it is to pay for them yourself and furnish the receipts to the lessee. This makes the tenant a debtor to you but if he is already failing to clear other debts what will make you think he will clear this one. So I prefer a shorter lease that makes you be able to use security deposit in correcting any liabilities sooner rather than later. The tenant is offered the right to renew upon termination.
5. Enlist a pay on demand property consultant if you cant afford 15% commission.
If you cant afford a monthly agents commission of 15% you can find a property consultant who do individual work for you like creating a lease, advertising for and screening prospective tenants, supervising renovations for a given period of time etc and only get paid for that. For this you can part with money between $35 - $75.00 per job. This is advantageous to you because it affords you save money but at the same time getting a professional touch to your property management. Above all it relieves you the burden of the work that can be stressful, difficult to you or that you may not have enough time to do.