Starting a business in rental property can be challenging and unpredictable but like most important ventures in life, it requires careful planning to pull off. The property market is a highly competitive industry so patience, organisation and professional advice in the right places is required for the best chance of success. Here are a few tips for making your mark in the rental property business.
Write up a Business plan
To ensure every score and detail is accounted for, you must formulate a thorough business plan for your new rental property business. Once you have decided upon your chosen areas and demographic, conduct some market research about the needs of potential tenants. Other considerations should include market examinations, finance management and all legal aspects of rental property, taking into account possible property disputes and legal fees etc. The more detailed and well-considered your business plan, the easier it will be to operate. Consult some tips on how to write a successful business plan if you are unsure and consult professionals for further advice.
Consider property areas
Choosing where you will place your rental property(s) is perhaps the most important decision to make when entering the rental property business as this is central to most other decisions such as design, facilities and other specific considerations.
Added to this, you must also consider your demographics of potential tenants. Will you be open to families as well as students or will you concern yourself with a particular type of tenant based on the location i.e. student campus or elderly retirement communities? The more you question and research your chosen area, the more flexible your business approach.
Compare tradesmen
The team of builders and contractors you hire to prepare your chosen properties for rent are likely to be the same team you will require for home repairs and services further down the line so it is vitally important to compare builders and price quotes at the earliest opportunity. When interviewing potential tradesmen, be thorough when checking their references and past experience to ensure they are right for your requirements.
Once you have the basics of property startup covered, the next step is to consider the appearance of each rental space. As Landlord and overall owner, it’s important for the sake of tenants and future business that you keep decor consistent throughout each property. Whether you accommodate students or professional couples, furniture experts such as David Phillips specialise in a range of landlord furniture packages that can help you achieve seamless style and quality from one home to the next.
