For investors, standing still is the worst nightmare. Even without a tenant, the place will continue to generate costs and the absence of this monthly income can cause losses to the owner. With a little planning and organization, it is possible to prevent the property from being empty for long periods, optimizing the return on real estate investment.
Often, the property is empty due to management problems on the part of the owners themselves, but nothing that cannot be solved. To guarantee the desired income, winning good tenants, it is enough to maintain a good administration of the real estate investments with the help of qualified professionals.
In this article, we will show you how good planning can guarantee the success of your real estate investment. Follow and have a great reading!
The importance of avoiding standing still
The costs of downtime properties are many and, when the management is done incorrectly, they tend to cause high losses. The more time you spend with the property empty, the greater the financial damage. The payment of fixed fees, such as the property tax and the condominium, which is usually made by the tenant, can become an unwanted amount for the owner.
In addition, keeping the property in good condition leads to maintenance costs. Therefore, leaving a property standing still is synonymous with inconvenience and financial losses. A few tips can help the homeowner to ensure a return on real estate investment.
How to ensure the success of your real estate investment
Plan new investments well
When the purpose of buying a property is rent, it is essential that the investor calmly and thoroughly research the acquisition. New investments deserve special attention and good planning. When buying a rental property, evaluate the location, access, structure, garage, electrical installations and all other factors that can influence the choice of future tenants.
Make a technical visit to the property to check that there are no leaks, infiltrations or other irregularities that prevent or hinder the rent. One tip is to consider the costs of small renovations and negotiate before the purchase to avoid losses.
Understand the costs of a stopped property
Before purchasing a rental property, it is important that the investor understands and knows all the costs that a stopped property can incur. When the owner is unable to win good tenants, he runs the risk of loss of income from the application, increasing the return on investment.
Basic expenses for the maintenance of a stopped property will be borne by the owner, which can generate a significant amount in the budget. Consumption fees and bills, even if minimal, represent another cost when properties are empty. In case of apartments, you cannot forget the value of the condominium, charged monthly. In addition, IPTU charges must also be accounted for. Therefore, understanding the costs of a stopped property is essential to avoid budget leaks.
Reduce the value of rent in times of market recession
It is necessary to carefully analyze the moments of crisis to see if it is worthwhile to reduce the rent. During the negotiation, evaluate all the possibilities to avoid losses with stopped property. Put on paper, in detail, the costs and how much it is possible to decrease the rent to carry out a successful negotiation.
Calculate this difference, in the month and year, and see how much it will impact the budget. The ideal is that, in times of recession, the owner can propose a reduction in the rental price that is interesting for both sides. It is often more profitable to offer a discount on tuition and guarantee the occupation of the property than to insist on a rental that meets your expectations and keep the place empty.
Be flexible when negotiating
When trying to rent a property, the owner must show an interest in negotiating. This makes him more likely to close the deal. Being flexible at the time of this negotiation is a great alternative to decrease the chances of the property standing still. It is important to show the potential tenant the willingness to facilitate that negotiation.
Giving a discount on the amount of the purchase installments or slightly lowering the rent are ways to offer flexibility at the time of the transaction. Carrying out a good negotiation is the best option to avoid having the property empty for long periods.
Know the qualities of the property
In order to sell or rent a property, it is essential to make a good market assessment to place a fair price. Knowing the attributes of the apartment, or the house in question, and analyzing how they can value the business makes a lot of difference. The analysis of the target audience and the items they value is essential to ensure the success of the transaction.
Be proactive and keep the tenant’s interest
Those looking for a property to rent search for several options and follow the most attractive proposals. To stand out in the face of so many offers, it is important that the landlord be proactive to maintain the interest of his prospective tenant. One tip is to send messages about the availability of the property and try to understand what they are looking for in that rental. In this way, the chances of occupying the property increase, avoiding losses.
Help from qualified brokers makes a difference
Investors often find it difficult to reconcile personal and professional responsibilities with managing the real estate business. Without proper management, the chance is high that the property will be empty for extended periods. Real estate agents offer qualified brokers capable of properly managing the entire process of buying or renting a property.
These professionals are responsible for presenting the property to their client portfolio, organizing all the necessary documentation for the negotiation, managing the payment of fees, such as the condominium, in addition to making direct communication with the interested parties. Thus, it is possible to guarantee the faster occupation of the property and avoid losses, without requiring extra time from the owner.
Therefore, by following the aforementioned tips, you can avoid missing out on good opportunities and additional costs when keeping a property at a standstill. In addition, it is important to advertise the property on the internet, with good photos and relevant information, to increase the chances of renting. To do so, count on trained brokers to manage the entire leasing process and guarantee a return on real estate investment.
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