A fast growing cog of wealth management, especially in Canada now, is buying real estate for the purpose of property rentals. Mortgage rates are at affordable levels (for now). More people are taking the plunge and buying properties, and home prices are rising.
Related: Moving in with your better half? What you should do with your property
That being said, is your property rental failing? Here are three reasons why…
Property rentals: You can’t trust your letting agent
There are a number of ways you can increase your chances of getting an agent that will do just that. Firstly, only choose letting agents who are members of the sector’s professional bodies, or of the National Approved Letting Scheme. It is also essential to check that they are registered with a Property Redress Scheme. And make sure they hold professional indemnity insurance. These will all safeguard you should anything go wrong at the letting agent’s end. While problems are rare with good agencies, they will be the ones who prepare for all eventualities.
Before you start your search you also need to be clear about what you want from your agent in terms of your flats to let. Do you just want them to list the property? Or are you looking for more comprehensive ongoing support? Read through what the company offers you, to check that it meets your needs and your expectations.
Take the same approach with the contract and fees. As the landlord, the agency is working primarily on your behalf. So you can expect to have to pay for this service. But it is good to know exactly what you are paying for and what you are getting for your money.
You’re not meeting your responsibilities
One of your responsibilities as a landlord is to ensure that the individual in question has the legal right to rent within the country. One of your responsibilities as a landlord is to either complete a set of checks on your prospective tenants or to ensure that these checks are completed by your letting agents. These checks ensure that the individual is the person they are claiming to be and that they have a right to be in the country. The checks apply to all tenants aged over 18, including those who are not named on the tenancy agreement. This would include the children of named tenants, or other young adults living as part of the household.
When requesting documents as evidence of age and right to remain you must ensure that you are provided with the original documents. And that they belong to the individuals in question. You should make copies of these documents and keep the copies in a safe place for at least a year after the end of the tenancy.
If any of your tenants have a limit on the time they are allowed to remain, it is your responsibility to recheck the documents before they are due to expire. If you are unsure of the status of a possible tenant or find they have no right to remain you must inform the Home Office. You cannot legally rent any accommodation to them.
Property rentals: You’re not listing your property factually
A lot of people do not put the right effort into their listing or the correct information. You need to make sure your listing markets your property effectively. Professional photos are a must. Videos work well too. You may want to consider using a drone, such as the ones at DrDrone, to take the best possible images and videos. However, you still need to make sure all of the information is accurate.
We will use a studio flat to illustrate this. It is important to be able to distinguish studios from other types of properties. And make sure you list them correctly when looking to let. Follow this quick guide to ensure you have the property listed under the right heading. A let can encompass any type of property, including flats, apartments, houses, and studios. It is important to list your property under the right category. It will help attract the right tenants and save you time on unnecessary viewings.
Marketing your property properly
The main areas of confusion tend to come from the difference between a one-bedroom flat or apartment and a studio apartment. While the terms are often used interchangeably, there are crucial differences that will matter to your tenant, and potentially to the rent you charge.
A one-bedroom flat is exactly that, a self-contained flat with a separate room for the bedroom. There are often also separate rooms for the living area and kitchen, and of course the bathroom. A studio differs in that everything, except the bathroom, is encompassed within one room. The floor space of that room is divided into areas and each area represents one room in a general flat. Studios appeal more to single individuals who do not need to worry about privacy or space as none of the spaces are shared. Studios also tend to be cheaper to rent than one-bedroom flats although that is dependent on the area the let is in.
Top image by Ralph (Ravi) Kayden on Unsplash
I am a 50-something Torontonian who loves everything about my city. It’s been my home, my playground, for my entire life. I went to school here. I met my wife here. I own real estate here. I love writing about the transformation of my city on the world stage, which hasn’t been anything short of dramatic. That continues on, as I write this. I write on the real estate scene. I write on travel and fashion. I like following the world of luxury watches.
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