Hey there! Today, I’m over at Modest Money, sharing tips on how to pay off your debt by increasing your income. I also had a blast chatting on Joe’s Stacking Benjamins podcast about retiring abroad. Though I’m not a radio pro like Joe, it was a fun experience!
As some of you know, I own a three-bedroom flat in the UK, renting out each room to young professionals. Typically, tenants stay for about a year before moving on, but I’ve had two tenants who stayed for three years, which is like hitting the jackpot for a landlord. Having long-term tenants is great: move them in, collect rent for years, and it’s always a bit sad when good tenants finally leave.
I’ve owned this property for nearly five years, and remarkably, I’ve never had more than a week of vacancy between tenants, even while managing it from abroad. Just last month, I had to handle a tenant moving out, finding a new one, and dealing with a broken washing machine all at once. Here are some of my tips for managing rentals effectively from afar:
Set a Fair Price
While everyone dreams of making big profits from real estate, overpricing can leave you without tenants, and underpricing can attract problematic ones. Aim for a balanced rate that’s competitive yet fair to keep tenants for the long term. Do some market research and tweak your pricing based on responses to your listing.
Say No When Needed
Trust your instincts. If a potential tenant doesn’t feel right, it’s okay to say no. Getting a deposit and the first month’s rent is great, but it’s not worth it if the tenant ends up causing damage. I have my current tenants conduct viewings and have a chat with prospects to ensure they get along. This way, everyone is involved and responsible for choosing the right person.
Get Insurance
I once owned a property in Paris which turned into a nightmare when the tenant passed away, and his widow refused to leave or pay rent. In France, evicting someone can take 18 months, but thankfully, insurance covered the lost rent. Companies like CIA Landlords Insurance can offer peace of mind. Just make sure tenants understand that their personal belongings aren’t covered by your insurance.
Automate Payments
All of my bills are automatically paid, and tenants set up automatic transfers for rent at the beginning of each month. This way, I don’t have to worry about remembering payments or them running out of essential services like electricity when I’m busy or traveling.
Have a Go-To Person
When I moved out of my flat, the remaining roommates were happy to help with tasks like forwarding my mail or letting in repair workers. It’s crucial to have reliable tenants who respond promptly to issues. Even though the original tenants I knew have moved out, I still have someone I can count on to handle minor repairs or notify me before things escalate.
Do you own rental property? Who manages it for you?
This post was featured on several blog carnivals and personal finance sites, which I greatly appreciate!