Advertising
Advertising

Four Things You Need to Understand Before You Rent out Property

Four Things You Need to Understand Before You Rent out Property

Whether you’re renting out a room in your apartment or purchasing a new property to generate rental income, there’s a bit of planning involved. Most people rent property for one reason — to make money. Whether you’re simply trying to reduce the burden of your basic living expenses or working toward financial independence, the process is basically the same. As long as you understand these four important concepts, anyone can learn to become a landlord.

1. The Rental Values in Your Area

Most people tend to overvalue their property a little bit. After all, it’s your home, and you’ve either spent a lot of time and money maintaining it, or at least a lot of time picking out the perfect investment property. We all want to maximize our return on these investments, but this will be challenging if your property is not priced appropriately. Do some research on local classified sites and see what comparable properties are renting for. Account for things like size, location, and upkeep. If you need help, you can follow a guide to pricing your rental.

Advertising

2. Your Tax Obligations

Don’t forget that you’ll be responsible to pay more than just the mortgage. You’ll need to pay income tax on the rental income you generate, and you’ll also be responsible for property tax on the real estate you own. These taxes can seem frustrating, but remember that this is how the city pays for its infrastructure. Spend some time so that you understand how property taxes work. This will help you maintain a clear idea of what your financial obligations are.

3. Your Net Operating Income

How much money do you actually have coming in every month? This is a question you’ll need to be able to answer in order to make positive business decisions. To put it simply, NOI is essentially all of the money you’ve collected in rental revenue, minus all of the direct operating expenses that were incurred in generating the income. Examples of operating expenses would be management fees, maintenance expenses, and property taxes.

Advertising

This is an important figure to have in mind because it is used by real estate investors all over the country. If you’re purchasing an investment property from someone, or even planning on selling your property in the future, NOI will be one of the most important figures used in determining profitability. This can seem a bit complicated at first, but after doing a quick Google search, you’ll see it is often explained in much more detail on a number of property management blogs.

4. Tenants’ Rights in Your Area

Every state has slightly different rules about what is or is not allowed. Some states don’t allow you to charge a damage deposit at all, while others have a limit on how much of a damage deposit is required. If you were planning on renting out a freshly renovated home, or a fully furnished apartment, you might not want to do so without a little bit of collateral that can help protect your investment. Even if you only charge half a month’s rent as a damage deposit, the incentive of getting that money back is enough to help keep most tenants mindful of caring for your home.

Advertising

Another important aspect of tenants’ rights are the factors that would allow a tenant to break or terminate a lease. If you live in a state that allows tenants to come and go with relatively little notice, you’ll want a property that is easy for you to rent out. Meanwhile, if you live in a state that requires tenants to give reasonable notice, you’ll have time to find a new tenant if your current one decides to leave.

Featured photo credit: pixabay.com via pixabay.com

Advertising

More by this author

Josh MacDonald

Internet Entrepreneur

guy friend 8 Ways to Judge If Your Girlfriend’s Male Friend Is Actually a Friend 5 Reasons Why Random People Follow You On Social Media Google Organic Search 2017 CTR 5 SEO Tips To Help Your Blog Grow In 2017 5 Ways to Get Your Degree for Free 5 Things to Look for in a Potential Roommate or Tenant

Trending in Self-Employed

1 5 Books You Must Read if You Want to Be a Millionaire in Your 20’s 2 8 Life-Changing Skills You Can Learn in Less Than 6 Months 3 Surprising, Reputable Ways To Make Money At Home Online 4 How To Make Money With CPA: Content Locking 5 Writing a Great Value Statement Can Bring In Tons of Money for Your Business

Read Next

Advertising
Advertising
Advertising

Last Updated on June 25, 2019

How to Ace an Interview: 10 Tips from a Professional Career Advisor

How to Ace an Interview: 10 Tips from a Professional Career Advisor

Wondering how to ace an interview? In this article, you will learn everything you need to nail your dream job — from resume submission to the end of the interview cycle.

In order to land a job interview, you must start with submitting a great resume. Submitting resumes is generally done by, “apply now”, the way many apply for consideration to a job requisition. Even if not applying the tradition way, let’s say, emailing someone in your network about an opportunity- you will still need a great resume.

So first thing first, work on your resume.

Today in the United States, 98% of organizations use applicant tracking systems (ATS) to extract information from an applicant’s resume to build a digital applicant profile that can be searched, filtered, and/or ranked.[1] So, a resume that is ATS friendly is part one for landing and acing a job interview.

To do this, a resume must have certain formatting and keywords to get the resume through the scan and into the hands of a recruiter. Without a resume that works with and for today’s technology and requirements, an interview can be difficult to land.

Here’s a great DIY Resume Guide (Do it Yourself Resume Guide) to help you craft an ATS and Recruiter friendly resume:[2]

There used to be a time where a job application was enough, today, an ATS friendly resume leads all methods in landing a job interview.

Advertising

Now, let’s talk about acing that interview.

A job interview is part 2 of the job application process. An interview is where applicants that have met the minimum requirements are selected to discuss the job opportunity with the employer or hiring manager.

Interviews are generally conducted via telephone, in person, and or applications/technology such as Skype. When the interview is landed, these 10 tips will help you ace the job interview:

1. Going for a Job Opportunity That Speaks to Your Passion

Having a passion for the job/ industry is extremely important. Doing something that aligns with inner passion is important for quality of life.

People that have passion for the job that they are interviewing for generally have better interview experiences. When we talk about what we love, it is seen in our faces, our body language, and heard in our tone. Here’re 10 Reasons Why Following Your Passion Is More Important Than Money.

In short, consideration of talents, discovering the things that make you happy and sad, and what you love losing yourself in.

2. Study the Job Description: Essential Job Functions and Qualification Requirements

Doing this will allow you the opportunity to develop examples of past and present experience that relate to the essential job functions and required qualifications.

Advertising

Examples of experience is always a plus for interviewers, painting a full picture goes a long way. Even when not asked for an example, it is always a plus to tie answers to interview questions to examples from your experience.

If there is a portfolio (work samples: images, writing samples, published work, videos, awards, etc.) of work- that’s even better!

3. Research the Company and the Interviewer(s)

Being an employee means entering into a relationship with an employer. In many areas of life, research is done prior to committing; researching a company prior to an interview is no different.

It is important to determine if the company is a good fit and therefore makes it easier to answer “why do you want to work here?” It helps better verbalize how past experience, skills, and values align with the company’s mission, and it shows the interviewer that you are interested in more than just a job.

4. Think Positive and Tap into Confidence

Positivity exudes confidence and both are necessary, so the employers knows that trust can be given.

Thoughts lead to action, therefore, operating from a positive perspective will reveal confidence. The goal of the interview is to land the job offer; employers need to believe that you believe in yourself so that they can believe you. Here are a few tips for positive thinking.

5. Have Copies of the Resume Used to Apply for the Job

It’s always good to be ready for extra interviewers in the room; many interviews today are panel interviews/ multi-person interviews.

Advertising

Though a resume was likely submitted with the application, it is always a good idea to come with extra copies in anticipation of the potential need. If there was no resume submission, it is crucial that you provide a copy during the interview; doing this shows the employer preparedness and resolution to challenges.

6. Plan for Behavior Based Interview Questions

Most companies use pre-selected questions, often times having a list of behavior-based questions. Usually these questions start with: “provide an example of”, “tell me about a time when”, and/or “describe a time/situation when”.

Having examples of problems solved and strategies used, initiatives led, contributions to teams and departments, will help ace a job interview. Painting a picture to help employers see skills, qualifications, and experience is extremely important during a job interview.

7. Make a List of Selling Points

It’s important to be proactive about the selling points that you want to make in an interview. This is where a portfolio works great! It is a great idea to make a list of selling points that reaffirms and demonstrates skills, qualifications, and experience.

Consider: awards, programs/ processes launched that led to cost savings and/or profitability, training/education, etc.

8. Showcase a Mixture of Personality and Professionalism

Companies like to make sure that interviewees are a good match for the company culture. Having a good balance of personality and professionalism during a job interview is key.

Personality can be shown when discussing hobbies, community service or extracurricular activities in answers to behavior-based questions, when describing your passion, and when discussing selling points.

Advertising

9. Have Your Questions Ready- Interviewing Isn’t One-Sided

Interviews are two-sided, like all relationships (an employee and employer agreement is a type of relationship). Before entering in many relationships, we all have a set of questions that we need answers to, prior to making the decision to commit.

Beyond doing this for self (because asking questions helps reduce doubt and uncertainty), it also shows the employer that there is interest in the company and its future and, shows that you are informed.

Here are a few considerations: “Can you tell me about the team I’ll be working with?”, “Why is this position open?”, and “What qualifications/ skills are important to succeed in this role?” You can also take a look at this guide for more idea: 7 Questions to Ask in a Job Interview That Will Impress the Interviewer

10. Follow-up with a Thank You Note

Interviewers love gratitude. Sending a “thank you for taking the time to discuss the job opening with me”, is very important to acing an interview.

Interviewers discuss one job opening with many applicants. A thank you note can serve as gratitude and the final chance to showcase selling points. This is also the opportunity to address any concerns that the interviewer may have had in the interview.

Summing It up

Consider a job interview a house. the foundation for acing a job interview is passion. The frame is a resume that lands the interview. The plumbing and electrical are showing up with confidence, providing a list of selling points, having examples of your experience and qualifications, and engaging the interviewer. The roof is showing gratitude with a thank you note.

More Tips About Job Interviews

Featured photo credit: Nik MacMillan via unsplash.com

Reference

[1] Jobscan: What is an Applicant Tracking System?
[2] Veronica Castillo: New Job- DIY Resume

Read Next