Real estate revolves around property which may be for sale or letting. These two services are key and are what drives this vast industry. However, the type of property invested in may be the difference between a successful business venture for you and struggle in the future.
Profit in property is earned in two ways, one is through rental yield where the rent earned must be minus any maintenance and running costs. The other is through capital growth achieved when you sell your property for more than what you paid for it.
It is important to note that rent varies and some factors outside your control can hinder you from attaining high profits. Rent is not guaranteed, as sometimes you may go for months without a tenant. This becomes a big challenge especially if this is the only means you have to cover your mortgage repayments.
However, there are means to make property letting more effective. It is important to have an inventory when letting your property. This helps to protect the position of both landlords and tenants. Inventory also helps you maintain your property.
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A fully detailed inventory also assists to avoid disputes that may arise between the landlord and the tenant.
Also, when preparing your property for rental, make sure it is well presented. Clean every part of the property and make sure it is near perfect before you let it out.
Fundamentally, take full responsibility of all the repairs in your property. If there are any appliances make sure they are all functioning properly. For any complicated item provide a manual to your tenants. Your gardens should always be well kept.
Another way of attracting tenants is by insuring your property, have an insurance cover for both the building and any content in the building.
The scenario of having your property on the market for a long period of time but end up without a buyer is not new, leading many to sell their properties at a loss.
Sales is a technique, it does not come automatically it must be worked on.
You could consider finding a credible real estate agent. Always display a house in good condition. Make sure you fix anything that needs to be fixed in your house.
Do not forget that price can be a barrier to effective sales but, there are ways to come up with effective pricing. If you are going to kill a sale, lower your price to remain competitive though this does not mean you under price a property.
Also, have good photos. Availability of online marketing has made house hunting easy, hence avail enough photos of your house. This is an easy way of describing your house to a buyer who is miles away.
If your house has been sitting stagnant on the market, try cleaning it thoroughly inside out before inviting any prospective buyer on board. Be objective in your marketing, know what you want. Place your property as something you are selling rather than a place of your own.
— The writer is the CEO, FAPCL group