Risk-free property rental is not a utopia – how can you achieve it?
Finding tenants is part of the daily routine of every rental property owner. However, many of them have already experienced that the search itself is not the only issue that arises when letting a property. We often encounter non-paying tenants, who can suddenly turn a trouble-free passive income into an additional concern.
Professional property management
However, it is possible to let a property without risk and without worries, and professional property management can help you achieve this. An increasing number of property owners are choosing this service, which is slowly becoming the new standard. “Professional property management makes particular sense for owners of multiple properties or apartment buildings. Keeping track of administration for all flats, dealing with everything on time and remembering whether everyone has paid by the due date is very time-consuming. Today, however, it is no longer unusual for owners of a single property to seek our services simply because they do not want the hassle of letting it,” explains David Novotný, owner and managing director of the independent real estate company Bohemian Estates International.
The company currently manages more than 2,000 flats throughout the Czech Republic and abroad, with a total value of CZK 15 billion. It offers clients a complete package of services under one roof, including the search for investment opportunities and the aforementioned professional property management. According to Novotný, interest in this service has been particularly strong over the past two years, partly due to the pandemic situation in the country.
One less worry
During the first wave of coronavirus, which particularly weakened the short-term rental market, a great deal of competition emerged, especially in large cities, and letting a flat became somewhat more difficult. “Most owners of properties intended for short-term rental had to find an alternative solution and began letting their flats for longer periods at a good price. Very quickly, more properties became available to rent, and it was easier for their owners to pay a fee and leave all the worries associated with letting to a real estate company,” says David Novotný.
Guaranteed rent
However, even professional property management cannot always deal with potentially non-paying tenants. Real estate companies can only act within the limits permitted by law. That is why Bohemian Estates International offers its clients the option of a guaranteed rent service, which consists of monthly payments of pre-agreed rent regardless of whether the property is standing empty or occupied by an unreliable tenant. “Guaranteed rent is particularly popular in large cities such as Prague and Brno, and this is where property owners use it most often. They simply enter into an agreement with us, we set the rent amount and deduct a service fee of approximately 15% from it each month. The remainder goes to the owner in all circumstances. They do not have to worry about anything at all; they simply enjoy a risk-free, trouble-free regular income,” concludes Novotný on behalf of Bohemian Estates International.