The Maltese rental property demand is on the rise, and for landlords, so do the worries. Securing a tenant comes with a plethora of unknowns and challenges; with headaches such as whether the rental will be worth the time and investment. There’s no guarantee on the result, but taking a course of action will give you greater peace of mind and act as preparation prior to any bad news.
FIND LONG-TERM TENANTS
Long-term tenants promise an extended source of income and reduced efforts on finding new occupants every few months. Keeping occupancy levels at 100% is a must should you want to secure ongoing rental payments, so devise a strategy in advance to counteract any dropouts. A foolproof technique which landlords swear by is screening potential tenants; this might be a time-consuming exercise, but having trustworthy lodgers will avoid complications throughout the rental period.
FIX MINOR ISSUES TO PREVENT BIG ONES
Have you noticed mould growing in a corner? Tend to it before it transforms into a monster which takes over the whole wall. Mystery switches or ones with warning labels should be handled before tenants set foot inside the property, to prevent any potentials hazards that might put you in hot water with the law. Fixing the cosmetic look and feel of the place rests in what type of appearance you want to set.
SET A DAMAGE CLAUSE
Many landlords are still relying on verbal agreements, which do not hold water. For peace of mind, landlords should create a damage clause within the lease agreement. This should cover who is liable to fix damages and timings. A sum of money is normally kept by the landlord to compensate for any reparations.
SECURE A LANDLORD INSURANCE POLICY
Consider a Landlord Policy as a safety net – much in need when something goes wrong. Insurance will cover damages, from physical property damage to rent default and legal liabilities.
CONTROL WATER AND ELECTRICITY CONSUMPTION
Unless a place still operates with a coin system, there’s no way the landlord can regulate water and electricity expenditure. By installing a solar water heater, efficient water taps and energy-efficient lighting, the bills will be regulated and the property would be an environmentally-friendly hub.
KEEP YOUR RATES COMPETITIVE
As demand increases, so do the rates. Keeping rental fees standard is one thing landlords are struggling with – what is the average, should I add €100 more? There’s no defined tool to decide the property’s worth; the best way to go about it is to keep rental rates in line with the market expectations. Never bite off more than you can chew, as it will affect your reputation.
Renting property is a business transaction; nevertheless, kindness goes a long way, so establishing a good relationship with tenants will balance your risks. A detailed contract should set boundaries for both landlords and tenants, giving each party total security.