Sage advice for renting your property

So you want to rent your property? First, decide how you want to rent it: unfurnished; unfurnished but with big appliances; furnished; or totally decked out with everything necessary to just show up and live.

Other important factors to consider are your home’s location and target market. If you’re in a tourist area, a turn-key rental may be more rentable than an unfurnished one. If you’re in a residential area where long-term residents are more likely to be your target market, then an unfurnished rental may be a better option.

Calculate Your “Nut”

How much will it cost to prepare and maintain your rental property?

The revenue property market should be looked at like a business – there’s a formula to help maximize the return on your investment. Invest too little into your property and it won’t rent or will present problems during the rental period. Invest too much and you might find you won’t get the return you were looking for.

• For any rental, be sure to invest well into the property’s maintenance and upkeep to avoid recurring problems and additional expenses for repairs.
• If you’re renting your property with appliances and equipment, invest in quality items for more efficiency, less maintenance, fewer repairs and a longer life span.
• If furnishing and decorating your property, invest in attractive, comfortable furniture and décor.
• If setting your property up for short-term or vacation rental, include all the essentials you’d need to live comfortably if traveling with only clothes and toiletries.

Set Your Price

Base your rental rate on market study. Consider location, type of property, type of rental (long/short-term, etc.), property features, amenities, etc. Other crucial elements include real property comparables (comparable rental rates actually being paid) and the market demand vs. property offerings in the segment of the market your property is competing in.

Marketing

There are many ways to market your rental, some more effective than others. “For Rent” signs on the property, print ads (newspaper) and web marketing are effective, but you should also consider Nowadays, more and more people search online for rentals. Some popular sites to list your property on are www.craigslist.com, www.vrbo.com and www.vivareal.net.

How you market your rental will only be as effective as how you actually sell it. Presentation of the property at showings, photos and descriptions in ads, and how you attend to inquiries and show to interested prospects are all crucial.

Tenant Screening

Screening your tenants is an important step in a successful rental.

For short-term:

For long-term, request:

• Current letter of employment
• Reference letter (with official ID of reference)
• Signed, legally binding contract
• A local guarantor to sign contract and provide official ID

DIY or Outsource?

If you have the expertise and time to rent out your own property, you’ll have hands-on control over your tenants and your property, and you won’t have to pay someone to do it for you.

However, finding good tenants can be a tiresome process and take a lot of time and money. Once you have the tenant, your role becomes property manager - and that can be tiresome also. Drawing up the correct rental contracts, collecting and depositing payments, dealing with maintenance issues, etc. are all part of the job.

There are reputable companies and individuals with plenty of experience that dedicate themselves to these services, be it a rental agent who specializes in marketing, a property manager whose principal role is to take care of your property and your tenants, or a company that provides both. Allowing a professional company to manage the rental process can help you maximize the rental potential of your property in two important ways. First, they’re likely to secure a steady stream of tenants for you; and second, they know the tricks of keeping your property maintenance low by screening renters and carrying out appropriate property management.

GH Real Estate is a family business founded in Mazatlán 21 years ago, today headed by Ricardo Gonzalez Henderson (aka Rikki Henderson). They specialize in the buying, selling, renting and administration of real estate property, both residential and commercial. Contact Gonzalez Henderson Real Estate, www.gonzalezhendersonrealestate.com and Alliance Real Estate Group, www.alliancemazatlan.com.