Letting a flat? Watch out for debtors
Finding a reliable tenant with a sound payment record is now almost like looking for a needle in a haystack. And when you finally succeed, you have not necessarily won yet. Late or missed payments are common even when dealing with decent people, and are one of the downsides of running rental flats. Other concerns include spending excessive amounts of time arranging repairs, maintenance or simply going through bills. How can you let a property for maximum returns and minimum hassle?
If you own an investment property, it is in your interest to achieve two goals: find a long-term tenant and receive regular monthly rent payments. “Finding a reliable and decent prospective tenant is a key prerequisite for reducing all problems associated with the profitable use of a property to a minimum. At a time when the number of habitual debtors and late payers continues to grow, this is no easy task,” says David Novotný, owner of the independent real estate company Bohemian Estates International, which has been operating on the market for more than ten years and, alongside investment advice, offers comprehensive property management—from screening prospective tenants and collecting rent to annual statements of utilities and energy costs, arranging repairs and regular maintenance.
How can you find a reliable, promising tenant?
Relying on a likeable appearance and a good word is not sensible, particularly if you have extensive experience of unsuccessfully trying to fill a rental property over a long period. Rather than searching on your own and relying on your own judgement, it is better to contact a real estate company with the resources and proven methods to thoroughly screen prospective tenants.
“We reduce the risk of non-payers through thorough screening of every tenant. This normally includes checking for outstanding debts and any enforcement proceedings, but we also look into their registered address and current employment. Thanks to our experience and expertise, we achieve an average occupancy rate of 98%,” says David Novotný of Bohemian Estates. “All property information and detailed statements are always available to every client in our online system,” he adds.
However, some degree of risk can never be avoided. “The human factor is unpredictable and can always let you down. It is not always a matter of habitual non-payers and debtors—anyone can find themselves in a difficult life situation, lose their job and become unable to pay. Our guaranteed rent service also protects clients against such cases. We lease the property from you, find a reliable tenant and check that they have no outstanding debts. We enter into a sublease agreement with the subtenant and pay you the agreed rent—even if the property is vacant, tenants are late with payment or do not pay at all,” explains David Novotný of Bohemian Estates.
By using this service, you can increase the value of the property you own and generate more from letting it. Thanks to several aspects that a professional real estate company can improve, it is even possible to increase its value by several per cent.