Some of us may have trouble on what to do with our condominium unit once we vacate it. Renting it out would be the best option to take. You can even earn extra income while making use of your vacant condo unit.
The Peterson Group Bespoke Condominium and Residences, expert in providing luxury apartment to expatriates in Singapore, Jakarta, Indonesia, Kuala Lumpur, Malaysia and Hong Kong,
But it can also be pretty challenging when you are already starting to. Without any prior skill and knowledge on how the realty industry works, you can be lost within your plans. There may not have other options but to get a real estate agent to help you out. While this is a smart move, it is smarter still if you know the basics so as to keep from being scammed and deceived later on.
1. Know the Rules
Even if it’s all your stuff you are renting out, it can be confiscated with a warrant if you don’t know the law. You can ask the advice of your lawyer or a public consultant on relevant tax codes related to investment properties. You have to review federal, state and local housing laws to avoid getting in trouble.
2. Know the Costs
Research rental rates in your area and be aware of the competitive pricing in your neighborhood. If you are within a metropolitan area, prices and cost of units are more expensive. Research rental rates in your area to know what you can ask and whether listing your property is even worth the effort. Depending on the market, you may not be able to cover your monthly mortgage.
3. Know the Fees
Just because you are expecting payments from your tenants does not mean you are free from payments yourself. You should never underestimate maintenance fees, cost for repairs including possible legal fee for enforcing lease. Also, be prepared for the times when the rent is low.
4. Know the Tenants
Unless your new tenants are family members or friends whom you really know, strangers will be living in your home. Sometimes, it is even easier to implement rules and regulations if your tenant is a new friend. Of course, you should know your tenant by their identification or credit report. For a more secure process, you can check with the authorities if he has a criminal record.
The Peterson Group Bespoke Condominium and Residences, expert in providing luxury apartment to expatriates in Singapore, Jakarta, Indonesia, Kuala Lumpur, Malaysia and Hong Kong,
But it can also be pretty challenging when you are already starting to. Without any prior skill and knowledge on how the realty industry works, you can be lost within your plans. There may not have other options but to get a real estate agent to help you out. While this is a smart move, it is smarter still if you know the basics so as to keep from being scammed and deceived later on.
1. Know the Rules
Even if it’s all your stuff you are renting out, it can be confiscated with a warrant if you don’t know the law. You can ask the advice of your lawyer or a public consultant on relevant tax codes related to investment properties. You have to review federal, state and local housing laws to avoid getting in trouble.
2. Know the Costs
Research rental rates in your area and be aware of the competitive pricing in your neighborhood. If you are within a metropolitan area, prices and cost of units are more expensive. Research rental rates in your area to know what you can ask and whether listing your property is even worth the effort. Depending on the market, you may not be able to cover your monthly mortgage.
3. Know the Fees
Just because you are expecting payments from your tenants does not mean you are free from payments yourself. You should never underestimate maintenance fees, cost for repairs including possible legal fee for enforcing lease. Also, be prepared for the times when the rent is low.
4. Know the Tenants
Unless your new tenants are family members or friends whom you really know, strangers will be living in your home. Sometimes, it is even easier to implement rules and regulations if your tenant is a new friend. Of course, you should know your tenant by their identification or credit report. For a more secure process, you can check with the authorities if he has a criminal record.
Source: http://petersongroup.info/blog