How to Succeed in Rental Management?
By Space Coast Daily // July 22, 2022
Rental management must be considered as a set of operations that allows the supervision of the rental of real estate.
Among the Management Operations:
■ Publication of the announcement
■ Organization of visits
■ Study of tenant files
■ Drafting of the rental contract
■ Realization of an inventory
■ Reminder of the tenant in case of non-payment
■ Clearance of condominium fees
In this guide, we will highlight all of these points so that you have a wise eye on the rental management of your accommodation. Remember, before working with a real estate agent, sign a rental agreement and nyrentownsell can help to do it.
How to Set the Rent for Rental Management?
In order to determine the price at which a property can be rented, a number of criteria must be taken into consideration.
Here is an overview of what will be used to estimate the price of a rental:
■ Living area of your property
■ Year of construction of your home
■ Energy performance of the property
■ Apartment floor
■ Services and standing of the condominium
■ Location and proximity to shops and public transport
■ Equipment made available to the tenant
The lessor must also inquire about the prices / m² of his sector. For this, nothing better than working with the online agency
Can I Set My Own Rent in NY?
This question is not always asked by owners, but there is a reality! Each municipality and department has its own rule, and depending on the geographical location of the accommodation, it will not be possible to freely set the rent.
If the accommodation you want to rent out is in a so-called “tight” area, the rent will not be free. There will be an obligation to respect the rent control of the area. This is valid when the tenant enters the accommodation but also over time. The rent cannot be increased freely when your tenant takes leave and a new tenant takes possession of the accommodation, except for special arrangements in the area.
Housing located outside the tight zone is not supervised. The owner of the accommodation freely sets the price of the rent, whether for a first rental or a re-rental.
How to Find a Tenant?
To find a tenant, you have several options:
■ Online ad
■ Word of mouth
■ Small paper ad in your building
■ Real estate agency
The Services of an Agency for Rental Management
■ Listing your apartment;
■ Management of telephone calls;
■ Choice of tenants on file before the visit;
■ Verification of false documents;
■ Carrying out visits;
■ Drafting of a lease;
■ Realization of an inventory of fixtures of entry
■ Incident management
■ Collection of rents
■ Realization of an exit inventory
Is the Rental Lease Compulsory?
The law of July 6, 1989 governs rentals for residential use. The latter governs the content of the rental contract between owner and lessor. Some provisions are mandatory and others are prohibited. This law, since amended by the Alur law of March 27, 2014, introduces new rules. From now on, the Alur law provides for a standard rental contract. The objective is to standardize rental leases.
Drafting of the Rental Lease
The drafting of a rental contract must contain a minimum of formalities. The lease must give precise information on the apartment, the common areas or the rent.
A lease must at least specify:
Elements of the Lease
■ Name and address of the lessor or manager and those of the tenant
■ Rental start date; rental period (3 years for unfurnished accommodation; 1 year for furnished rentals)
■ Living area of the property
■ Description of the accommodation and equipment (number of rooms; parking space; cellar; outbuilding included in the rental, etc.)
■ Nature and amount of work carried out since the leave of the previous tenant
■ Amount and date of the last rent collected in the case of a departure less than 1 year and a half
■ Equipment for access to information and communication technologies (Internet, ADSL, fiber optic, cable, TNT)
Annexes to the Lease
■ Insurance certificate for the apartment taken out by the tenant
■ Information notice on the rights and obligations of tenants and landlords
■ Guarantee signed if applicable
■ Energy performance diagnostic
■ Inventory of accommodation signed in 2 copies by both parties
This last point must be the subject of very special attention for the tenant and the lessor of the property.
Organization of the Inventory
The lease is signed between the two parties. It is now necessary to carry out the inventory of fixtures of entry of the tenant. The inventory must be written on paper and attached to the rental contract. Its purpose is to precisely describe the condition of the apartment before it was occupied.
Who Carries Out the Entry Inventory?
Owner of real estate, you can carry out the inventory with your tenant. For reasons of fairness, you can involve a third party such as:
■ A real estate agent
■ A judicial officer
When the tenant wishes to take leave, it is imperative to carry out an exit inventory. The latter makes it possible to compare the inventory of fixtures of entry and exit of the accommodation. In the event of a dispute, it makes it possible to compare the 2 documents and release the responsibility of one or the other party.
A Follow-Up of the Contract Throughout the Duration of the Rental
The tenant has taken possession of the accommodation, you naturally only have to follow up on the proper execution of the contract.
Here are some of the tasks to be planned for a good execution of the rental agreement:
■ Transmit a rent receipt to the tenant if he wishes, distinguishing the rent from the charges
■ Perform the regularization of annual charges by calculating actual expenses
■ Revise the rent on the date agreed in the rental lease based on the benchmark rent
■ Manage day-to-day incidents
Deal with Unpaid Rent
Unpaid rent represents a very small share of cases. However, you have to be aware of it. The procedure in France to exclude a tenant who does not pay is complicated.
For example: if your tenant stops paying the rent, you must send him a registered letter with acknowledgment of receipt. During a period of 2 months, you cannot initiate criminal proceedings against him. If this deadline is not respected and you go to court before the end of the 2 months, no insurance for unpaid rent will work.
Decent Housing Throughout the Lease
The landlord has the obligation to provide his tenant with decent services in the apartment throughout the duration of the lease, that is to say:
■ Housing in good condition of use and repairs;
■ Apartment with working equipment;
■ Carry out major work if necessary (plumbing, etc.)
You don’t want to take care of rental management?
Entrust your property to a real estate agent to have your property managed at a fixed price, whatever its surface area.