Smart Decision for Rental Properties

Owning and maintaining a property can be expensive, and the cost can become a burden if you don’t live in the property. To cover the cost of your property and generate extra income, consider renting the location.

Finding a renter it is a great way to ride out the storm for those who want to sell their property eventually, but prefer to wait for a higher price offer.

This article aims to provide tips for those who are considering the prospect of renting out a property. We’ll discuss the key factors you should consider before renting, and the process of finding a reliable renter.

What’s Your Market?

The first thing that you will need to do is get your hands on market research, in order to determine a fair valuation for the monthly rental charges.

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You should seek to find information regarding what other rental properties in the area are charging. Set a competitive rental rate, so that potential renters consider your property as an option.

Your Look

The decoration and overall look of your property are important.

First, decide whether you are going to rent a property fully furnished or not. It goes without saying that you will be able to get a slightly higher payment for a property that is furnished.

You need to be careful when selecting this option. It is important to remember that while you may love bright pink walls and fancy decorations, others may not. This will simply limit the number of people that are interested in your property.

By all means, add some personality to the place, but make sure that you do so in a way that is generic and attractive to all.

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Ask An Expert

You should also consider the prospect of seeking aid from a professional company. There are lots of investment businesses and rental experts you can contact, like Drew Fasy.

Renting a property may cause unexpected issues that you must address. Instead of panicking and worrying about what you need to do, find a industry professional who can advise you.

Managing Extra Income

Once you find a renter and you’re able generate extra income after paying for the cost of your property, use these tips to start saving money and investing:

Discipline and time

With discipline and time, I think most people can accumulate far more wealth than they think is possible. But growing wealth requires change- which is precisely why most people don’t make the effort. The changes I’m suggesting involve an old friend:

Delayed gratification

Some decisions are relatively small:

• Dropping a subscription music service and just listening to the free version (Pandora, for example).
• Making coffee at home two days a week, which means that you stop by Starbucksless often.
• Buying afew more generic products when you go to the grocery store and Target. (I’m not going generic on salad dressing, however).

Since these are smaller decisions, the amount of gratification you’re delaying is small. You don’t mind listening the commercials on Pandora (I certainly don’t- I just turned down the sound), and the coffee at home isn’t bad.

Other decisions are much bigger. StudySoup wrote this great article on the average amount of money a college student saves by having a roommate. The average savings over four years is over $15,000.

Now, having a roommate is a big sacrifice, because you lose a fair amount of privacy. If privacy is really important to you, it’s a true delay of gratification (until you graduate, get a job and can afford to live alone).

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So, what do I get?

OK- so what do I get out of all this delayed gratification?

You build wealth- which can give you peace of mind.

Here’s a practical example: By making changes to your spending and building a savings account, you create a $1,000 emergency fund. If your car brakes down, you can pay for the repair.

Action Steps To Consider

 

• Create a budget, even if that budget is simply on notebook paper.
• Separate your expenses between fixed and variable, and take a hard look at your variable spending.
• Take steps to cut your variable expenses each month and put the amount you save into a separate savings account.

This post is for educational purposes only.

Ken Boyd

Author: Cost Accounting for Dummies, Accounting All-In-One for Dummies, The CPA Exam for Dummies and 1,001 Accounting Questions for Dummies

Co-Founder: accountinged.com

(email) ken@stltest.net

(website and blog) https://www.accountingaccidentally.com/

(you tube channel) kenboydstl