A long term rental is generally rented out to tenants on a long term basis, usually more than half a year. In addition, depending upon the renting landlord, the rental house may come complete with or without furniture. Simply put, long term rental investments are accompanied by a fairly predictable occupancy rate, at least for the first few years. However, as time progresses, this occupancy can change drastically.
As an investor, your long term rental strategy should be geared towards maximizing your profits and minimizing your losses in case something unexpected happens. Of course, there are many variables to consider when establishing this type of investment property strategy, especially when you’re working with a tight budget. For example, when you’re evaluating the long-term rental strategy, one important factor that you have to keep in mind is that you must never pay more than half of the monthly rental fees. Bear in mind, too, that short term rentals can also take longer before tenants move out, so it’s always best to check on how much you will be spending each month until the lease expires.
Of course, another factor that you must consider is how long you intend to lease your property. If you plan to invest in long term rentals for only a few months, then you won’t have to worry about expending much effort in looking for good tenants. However, if you plan to lease out your rental unit for at least a year, then you need to think long-term. This means you must look for good tenant improvements, such as a new carpet, a new kitchen table, and other things. Not only will this improve your rental income, it will also attract new tenants, which increases your chances of generating an additional revenue stream. You can get more information about rent apartment phuket.
Another way for you to boost your rental income is to get rid of any existing long term tenants. For landlords who want to retain their present tenants, they should not only offer them a long term rental agreement but also include it in the sales contracts. Offer them a lower price per month, because you are going to spend more money to maintain them. However, you can always increase their lease terms if you feel that they are capable of paying it.
For those who plan on doing short-term rentals, it is recommended that they get a short-term lease contract. This will allow them to immediately become responsible for the leasehold income, which will, in turn, give them more flexibility regarding when they can rent out their apartment. In case you decide to do short-term rentals, however, you should know that you have to fulfill the following obligations before you get a short-term permit from the local authorities: obtain a business license, sign a contract with the landlord and the property manager, and obtain a copy of the property’s local by-laws. You can also employ the services of an attorney to help you out with these obligations and legal documents.
Last but not least, when it comes to planning your long term rentals, it is important that you also take into account the occupancy rate of your chosen neighborhoods. If your target market is mainly college students, you should make sure that there is a minimal percentage of students who are renting accommodations in your locality. You can do this by checking the college dorm vacancy statistics on a regular basis. It might also be a good idea to ask the city manager to inspect your chosen neighborhood and gauge the current occupancy rate of the various buildings you might be thinking of leasing.