Managing the family finances can be pretty tricky at times. Even when you and your partner are in full-time jobs, sometimes it just feels like you will never have enough money. However, that doesn’t mean you should despair right away. There are many ways you can make more money. Some of the easiest ways are investments. In fact, you might already have things like stocks and shares. These are great ways to save your money and watch it grow into a nice little nest egg. But what if you want to use your money to generate a second income? One of the best ways to do this is to invest in a second home. Then all you need to do is rent it out. Then you will be getting a monthly income from the rent. Not sure you’re up to this? Sure you are! To help you out, here’s my handy guide to show you how simple it is.
Long Term Or Holiday Rental?
One of the biggest things you need to decide is whether you want to rent our your second property as a long term rental or just as a holiday let. Obviously, if you don’t live in a tourist destination, then it could be tricky getting enough people staying to justify it as a holiday rent. However, with sites like AirBnB becoming hugely popular, there is now a good chance that you can manage it wherever. What are the positive factors of having a holiday let? Well, firstly, you will change your tenants frequently. You will also have a lot more access to the house as you will be required to clean it frequently. If you ever get sick of letting it out as a holiday let, you can always just stop taking bookings. However, you are not guaranteed a regular monthly income from the rent. Especially during low tourist season, such as throughout winter. If you rent out your property as a long-term rental to tenants, then you will receive their rent each month. Having trouble with tenants not paying each month? Then just get in touch with a specialist lawyer, such as Jean Baptiste & Associates.
Spruce It Up
Your second property might need some work doing to it so that it is ready for new tenants moving in. As you are the landlord, you will be responsible for any DIY that needs carrying out. And if any of the appliances that you own in the flat or house break, you will also need to either repair or fix them as well. So don’t think that you can simply forget about the property once the new tenants move in! Before they arrive, make sure everything is up to scratch. The rooms all need to be totally redecorated and you should also think about having new furniture put in. Electrical appliances need to be checked to make sure that they are completely safe. If something doesn’t work or isn’t totally safe, get it fixed before anyone moves in. If someone injures themselves in the apartment because of a faulty appliance, you could be the one who gets the blamed. If that happens, you might have a lengthy court case on your hands!
How To Find Tenants
If you are renting your property out as a holiday let, you need to make sure it is well advertised so that tourists will find out about it. Think about contacting your local travel agent to see if you can advertise with them. You should also create a website for your holiday apartment. It is also a good idea to start up a blog and write articles about your local area. This should be connected to your blog so that when people browse your blog, they will find out about your rental property. It can also help to improve SEO, which will ensure you are at the top of any Google searches. Are you looking for long-term tenants rather than tourists? Instead of seeing your nearest travel agent, book an appointment with your estate agent. They can then advertise your property for you as well as advise you on a monthly rental price. No matter the type of your let, also think of using advertising sites such as Gumtree and Craigslist.
Setting The Price
One of the most important things about getting your rental set up correctly is to think of how much you want to rent it out for. If it is going to be a holiday let, you will need to think of a nightly price. You can also set a fixed weekly price to encourage longer stays. If you don’t have a clue how much you should charge, ask a travel agent for advice. It also pays to do your own research and see what other guesthouses and bed and breakfasts charge in your local area. Try and set your price somewhere around the same level as they did. Whatever price it is, you need to make sure it covers all your expenses such as weekly cleaning. Renting out to long-term tenants? Then you need to think really carefully. This is because, once they sign the contract, it will be difficult to increase the monthly rent. Take a look and see how much the average monthly rent is in your area. See how much landlords are charging for similar sized property to yours. Don’t forget to take nearby amenities into account as well. If your property is close to shops and a school, then you can easily bump the price up a little bit. However, if the neighborhood isn’t a desirable one, then you may need to lower your rent accordingly. It all depends on demand in the current market.
Investing your family’s money into a rental home can do wonders for your finances. You will be surprised to see just how lucrative this venture can be! However, you need to be a bit savvy if you intend on reaping the biggest possible rewards. Hopefully, this guide will have shed some light on how exactly that is done.