4 questions to ask before renting a house
Are you looking to invest in the Luxembourg rental market? It is essential to ask yourself the right questions before committing to a rental. Your answers to these questions will help you formulate a plan for renting out your property while drawing your attention to potential weaknesses. Wondering how to get started? Follow these tips we've provided for success!
1. Determine your needs before you rent a home
It's important to know where you're going before you move into a rental home. Will you consider student tenants? A husband and wife?
You'll need to think about a number of factors, such as location, proximity to essential infrastructure, desired length of tenancy (one year or several years), etc.
Did you know that if you are renting a property that is already furnished, you can charge a higher price? Determine your goals to choose the best possible scenario.
2. Develop a plan to find and secure a rental home
Once you know what you want to accomplish, choosing a plan will be less difficult.
It's a good idea to plan ahead if you want to invest in a rental property for your retirement, for example. What would you prefer: to live in the city, close to all amenities, or in the country?
A young couple without children is an ideal tenant for a residential property close to all amenities, as they are likely to want to buy a home in the near future, making it easier for you to break the lease when the time comes.
3. Consider the prospect of resale
You should always consider the market value of your rental property before signing a lease. Even if you don't have a long-term goal in mind at the moment, it's still worth considering.
It may be more difficult, for example, to find a tenant for a home in the country than for a home in or near a major city. It is possible that the increase in value will be reduced accordingly.
If you meet this last condition, your whole approach may change.
4. Set the rent and arrange financing for your property
Another factor that can derail your strategy is how you plan to pay for it.
Do you know if you have the financial means to meet your rental goals? Do you, for example, have the financial means to rent a fully furnished home? You can't settle for poor quality furniture that will reduce the value of your home and require more frequent replacement.
The process of determining the rent will also help you set a budget. Keep in mind that you will not receive any rent during periods when the property is unoccupied. It is important to consider all the costs associated with a rental property, such as maintenance fees, taxes and condo fees. You may have to front money for some costs.
Everything you need to know to develop a well thought out home rental plan is outlined above. Still need more information? Feel free to ask our Nextimmo real estate agents your question and we'll do our best to help you.