Wednesday, September 4, 2019

Renting A Property For Profit

Did you know that you can make enormous profits by finding a cheap property to rent and then subletting it to a number of individual tenants? This is known as the rent to rent strategy, and it can give you the chance to make an extra $1,000 per month, if not more.

The rent to rent strategy presents an excellent way to increase your cash flow without having to make a huge initial outlay. So, how does it work? You’ll begin by renting a property from a landlord on a single let basis. You then get permission from the landlord to rent the rooms out individually, which is known as subletting, and thus you will rent out each room of the property to individual tenants who will pay rent to you each month. As you receive multiple rents, you will make much more than you need to pay your landlord. Thus, once you have subtracted the rent you need to pay as well as any costs, such as insurance and utility bills, you pocket the difference. You will also need to cover the likes of hiring Precision Locksmiths whenever someone new moves in to ensure security. Convincing your landlord shouldn’t be too difficult either, as this approach offers many benefits to them, including guaranteed rent, reduced management on their rental properties and the security that all tenants are carefully vetted beforehand. You can start making money quickly with this scheme and the only costs you will face is the price of making the property appropriate for multi-letting as well as any insurance costs and the rent you need to pay the landlord.

So, why should you be interested in a guaranteed rent scheme? Isn’t this just for letting agencies? While letting agencies offer this type of scheme, you can too, and you can make it more of an attractive proposition for the landlord. But first, let’s reveal what is actually entailed with this scheme; you will rent a property from a landlord, you will then turn all of the rooms into bedrooms, which you will rent out individually so that you are calculating multiple rents. You will then deduct the amount you need to pay the landlord as well as any costs entailed, such as utility bills and insurance. You then pocket the difference, which can be a significant sum, with a lot of people making an average of $1,000 per month. The main key to the success of this strategy is getting the landlord on board, which is a lot easier than you may think. After all, you are giving them a guaranteed rental sum every month, irrespective of whether their property is occupied or not. You also take the hassle off their hands that comes with rental properties, from maintenance to management. You will find tenants and take care of small maintenance jobs, and this is something a lot of landlords cannot refuse.

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