It would be wonderful if you could spend all of your days enjoying the great outdoors and relaxing at your cottage or ski chalet. But the real world has a bad habit of getting in the way. Obligations at home and work keep you from spending all the time you would like to at your home-away-from-home. Consequently, your recreational property sometimes sits vacant and unused. Renting your property to others is a great way to capitalize on those times when you can’t be there.
The most obvious reason to rent your property is the added income. Revenue generated from renting can help offset the expense of owning and maintaining a second property and you can claim tax deductions on many of the associated expenses (maintenance costs, utilities, insurance, mortgage interest, etc.). Property-hunters might consider rental income potential from the outset. The possibility of additional revenue might be the deciding factor in how extravagant of a property you purchase.
Renting may also offer an important side benefit - protection from thieves and vandals. An occupied property is less likely to become the target of criminals who target vacant properties.
The process of marketing and renting your property can be time consuming. Determine a price by asking around and reading newspaper classified advertisements. This will give you an idea of what others are charging for similar properties in your area. Set too high of a price and your property may remain vacant. Classifieds, store windows, community bulletin boards, the Internet and word-of-mouth are good places to advertise.
There are downsides to opening your doors to renters. Tenants will expect a certain level of cleanliness and repair. A dripping faucet and a few cobwebs might not bother you, but your clients will expect the premises to be clean and in good repair. You will also have to make yourself available to respond to complaints and emergencies. And then there is the fear of nightmare tenants - renters who are messy, noisy or destructive.
One way to minimize the potential headaches is to list your property with an agency. The agency will market your property, screen tenants and in some cases provide cleaning and maintenance services in exchange for a fee. They also provide a rental agreement and take a damage deposit to protect you and your property from problem guests. |
|
