Renting out property is a smart and easy way to earn extra money which is why it is not uncommon to come across people who buy an apartment or even a house with the sole objective of renting it out or starting a shared accommodation.
However, turning a property into a steady source of income is easier said than done. It requires thoughtful planning with attention to details if you want the place to be occupied by rent-paying tenants instead of lying vacant most of the time.
Take a look at these tips to start a share house before you invite tenants to your place.
Do the Research
Starting a shared accommodation means that you must first decide the type of tenants that you wish to attract and then ensure that the building, as well as the location, suits them well.
If you want to earn more and have a large space, you can consider renting the place to a family. Or you can also rent it out to university students. Depending on the location, the latter is usually the best option because the tenancy duration is often short (a semester or a couple of months at most). Plus, there are lots of students in search of decent accommodation. This means that your chances of finding tenants are higher.
Pick a Good Spot
It goes without saying that the house or apartment that you pick for starting a shared accommodation must not be located in a far-away isolated place. Whether they own a car or rely on public transportation, potential tenants, especially students and employees always look for places that are close to their institute or organization.
If you wish to attract students then remember that there must be bus services in the area that operate early morning as most of them do not own cars and need to reach their classes on time.
Market the Place
Word of mouth is not enough. Post pictures and advertise your place on online platforms where your target tenants can see what you have to offer.
Real Estate agents can handle the legalities involved in the process and also help you find tenants. However, they incur extra costs and can sometimes be difficult to deal with. Decide if you need help from estate agents for starting a shared accommodation or not.
Interestingly, you don’t always need to ‘own’ property in order to start a shared housing. You can lease and then sublease a place given that you have discussed the matter properly with the landlord beforehand.