5 mistakes you can not make when renting a property
Ignorance of real estate law: Legal problems in the real estate sector are common, but ignorance of the local legal system can lead to serious mistakes.
Among them are rental properties and their various ins and outs – the more you know about them before you go ahead with your investment or develop a business plan for a particular State, the less stress there will be when things go wrong later on.
For example, in which cases it applies, how many days it grants and when and how to deliver notification of:
- Payment or delivery of the unit.
- Violation of contract with option to correct.
- Violation of contract with termination of contract.
Disturbance to neighbors: In the same way, before proceeding with any legal eviction procedure, different steps and notifications must be complied with, which can mean months of delay in the process, for which we recommend having a specialized lawyer in the team. evictions.
Not pre-qualifying tenants: Pre-qualifying potential tenants is one of the most important processes in this business and is overlooked by many landlords. Despite the negative impact of having the property vacant, accepting a “non-pre-qualified” tenant often brings higher expenses and headaches in the long run. Set up a pre-qualification system and stick to that criteria; It is important that you take into account the local regulations “Fair Housing Laws”.
Some of the most common elements that a prequalification must possess are:
- Criminal record.
- Credit report.
- References from previous landlords.
- Work references.
- Personal references.
- Average time they live in each property.
Ignorance of the local market: There are different tools and systems that allow determining, in a specific urbanization or building, the following:
- Actual rental price for specific periods.
- Time units spend on the market before being rented.
- Direct competition.
Lack of strategy: As an investor it is essential to know the behavior of the local market or to have a real estate advisor who has this knowledge:
- Would your pricing strategy be different if you were to compete with 1 property instead of 10?
- If families predominate in the area, do you think it would be easier to rent a 1-bedroom property or a 3-bedroom property?
- If the area is mostly single executives, do you think it would be easier to rent a 1-bedroom or a 3-bedroom?
- If properties take 45 days on the market before they are rented, what strategy can you use to speed up this process?
Avoid these common mistakes and rent the property you want without any problem.\\