The profitability of investment flats depends on reliable tenants
There is enormous demand for flat rentals today. Many people looking to rent out their current flat believe it is a simple task. All they need to do is find a reasonable tenant, agree on the rent, sign an agreement and check on the flat from time to time. However, reality often exceeds their expectations – in a negative sense.
How do you find the right tenant?
“Finding the right tenant can be difficult. It is alarming how many landlords in the Czech Republic have had bad experiences with problematic tenants. Disputes with non-paying or otherwise troublesome tenants drain time and energy, turning what should be easy additional income into a full-time job. As when looking for a flat, we recommend using all available channels when searching for tenants,” says David Novotný, owner and managing director of Bohemian Estates, a real estate company.
Try using your own social networks, both online and in real life. It is likely that one of your friends will know someone looking to rent a flat. Find out why the prospective tenant wants to move in, who they would live with and where they have lived so far. This will help you establish whether their intentions are long-term or whether they simply need to resolve a particular life situation quickly. Also follow various themed groups on social media that bring together people looking for housing or flatshares.
Property management requires experience and plenty of time
As a property owner, you need to take on many roles. You must place an advert, respond to interested parties who contact you, and arrange viewings of the flat for prospective tenants in your spare time. Someone will constantly be contacting you by email or telephone. Once you agree the tenancy with your chosen tenant, you need to prepare a lease agreement with clearly defined rules for both parties. You must also consider all the usual and less common situations that may arise. If you overlook anything important or state it unclearly, you may face difficulties.
“In addition to legal knowledge, you will also need accounting knowledge to ensure you tax your rental income correctly. With every tenant, you will need to arrange separately how utility advances are paid, transfer services such as internet, television and telephone, and deal with complaints and repairs whenever something breaks in the flat,” says Novotný of Bohemian Estates.
Do you need expert help, or simply want to save time?
Does the whole process seem complicated? Are you worried that you will not be able to turn down an applicant you have doubts about? Are you concerned whether your agreements comply with the requirements of the new Civil Code and will protect you? Do you want to avoid calls from applicants and evenings spent on viewings? The solution is to entrust the letting process to real estate professionals.
The guaranteed rent service lets you rent out your property without risk or worries, while earning you on average CZK 13,205 more than if you let your properties yourself. “If you do not want to risk problematic tenants, non-payers or property damage, place your investment flat in professional hands. Since 2006, we have helped flat owners and major investors let more than 2,000 flats worth CZK 15 billion. This gives us the essential experience and know-how to let properties on a turnkey basis, on the most favourable terms and with a complete service. In short, we take care of everything while you earn money – regularly every month, without interruptions,” adds Novotný.