No more worries about letting property. How can you enjoy hassle-free rental income?
The pandemic shook up the property market. Although property prices remained the same or even rose slightly, it made operating investment flats more difficult for owners. It prevented those operating in the short-term rental sector from carrying out their business overnight, while even those letting their properties long-term experienced a deterioration in the form of missed rental payments. Many tenants found themselves short of money as a result of government measures. Even regular income from a long-term rental, paid into the account on time, became something above the norm in the new era. How can you protect yourself against non-paying tenants in today’s crisis without putting your own livelihood at risk?
During the pandemic, many people were prohibited from working due to current government measures; others faced a dramatic fall in demand, while some lost their jobs because they worked in the hardest-hit sectors of the economy.
“Rent is a significant item in the family budget, so it is no surprise that, in the current crisis, some tenants find themselves on the brink of financial hardship. Coronavirus will not disappear and will remain with us to some extent, so it is better to adapt to the situation and protect yourself in every possible way to ensure, as a landlord, a secure flow of rental income. This is especially important if you depend on it, for example to repay a mortgage,” advises David Novotný, owner and managing director of the real estate company Bohemian Estates, which has professionally handled the purchase, management and sale of property, including development, for more than ten years.
In addition to protecting yourself against the risks of this business, as the owner of an investment property you can also simply increase the value of the property you let and achieve even greater appreciation. “With the Guaranteed Rent service, the value can increase by up to several per cent, depending on many aspects that a professional rental manager can improve. The service is intended for anyone who wants to receive regular rent every month without having to worry about anything. We particularly recommend it to owners who bought their flat with a mortgage and do not want to run into difficulties when the flat is vacant or when the tenant becomes unable to pay,” explains Novotný.
How does it work in practice? “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 unoccupied or the subtenants fail to pay. Once the lease ends, we guarantee that the property will be handed back in perfect condition. And how do we determine the rent? Following an inspection, we establish the market rent and deduct approximately 15% excluding fees; this is the rent we guarantee to you once the terms have been agreed,” concludes David Novotný.