People’s interest in real estate is growing year by year, thereby increasing the demand in the market. At this stage, property prices are rising, and give people the opportunity to buy a property in a newly constructed property, sell a finished object with good dividends.
For those people who do not want to sell their property, there is another option – rent. Nowadays it has become a very popular business. This type of business refers to the passive type of activity, which brings, so-called, “passive income”. Let’s find out how can you lease your villa and be in profit.
The First Thing You Need to Do
It should be immediately said that the opportunity to lease a villa with bare concrete walls or in a deplorable state that requires immediate repair is almost zero. So concentrate all your skills, remember how to use a stud finder and now we’ll tell you what to do next.
Perhaps this proposal is attractive at first glance, especially for those tenants who want to save, but practice shows the opposite. Often, trade-offs for renting a villa without repair go to scandals or very rapid departure of tenants from a rented dwelling. This is due to the fact that tenants underestimate the repair costs, and the owner reassesses the employer’s desire to pursue quality even to the detriment of cheapness.
Therefore, the first thing you need to do is to prepare a rental object. This means that you need to do current or major repairs, check all plumbing and electrical wiring, make furniture restoration (if necessary).
If all furniture in the villa requires renovation, it is better not to buy furniture (except kitchen, and built-in cabinets) until you find a tenant. Buying furniture for a particular tenant will be an additional bonus, and can raise the cost of the apartment.
The Next Step
The next step is to determine the adequate rental price. In the case of underestimation of the villa, you as a homeowner may receive less money, and in case of the overstatement, you will have to search long for tenants. Therefore, before submitting an advertisement, you should study similar ads in different sources.
Two Options to Lease Your Villa
Daily leasing of a house can bring you more profit than long-term rent. This is due to the fact that most often a large house is rented for a day, wanting to celebrate a holiday or other significant event, which means that they are ready to pay much more permanent residents. But it must be said that when leasing a house for daily rent, you risk more, as often celebration is accompanied by drinking of alcoholic beverages. A large company in a state of intoxication can damage the house. So when opening this business the house must necessarily be insured against such cases and these circumstances should be underlined in the contract.
Long Term Rental
Renting a house in a long-term lease will allow you to minimize the expenditure of time and effort, and also to ensure a stable income for at least a few months. This option is also attractive because the house for long-term rent is usually taken by more tranquil people, who are bored with the city vanity. Therefore, the likelihood that they will damage the house is very small.
Therefore, bring your villa in order, choose the right option for yourself and go for passive income!