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Three Distinct Options For Your Second Home Or Income Property

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If you have a second property or a home that you are not currently living in, you have several options regarding the best way to maintain and potentially make money from it. Depending on your availability and location, one option may stand out as more suited to what time and effort you are realistically able to invest in the property at this time. Consider these three ways to deal with the dwelling, and pin-point the one that best suits your distinctive needs and goals:

A property management company

Hiring a property manager may be the easiest way to deal with tenancy while also generating an additional source of income. These individuals typically charge by taking a percentage out of the monthly rental payment, which may be an affordable way to deal with renting out your property.

Other things to keep in mind regarding property management include the following:

  • Be sure to check the management companies out online to read feedback, reviews, and generally rate the overall satisfaction of those using the company.

  • Read the contract thoroughly presented to you by the property manager, including the small-print. Be sure you are aware of the responsibilities and liabilities that you will have in the arrangement.

  • You will still need to maintain insurance coverage on your property, and it may be best to cover utilities to ensure the dwelling has water and heat, preventing mishap or potential damage. Talk with the management company to determine how much more you can expect to earn by covering these basic necessities to tenants.

Do-it-yourself rentals

Being a landlord isn't easy and may cause some grief over time, or when problems occur. Be sure that you have the time and desire to tend to the rental and meet with tenants before taking on this responsibility. It may turn out that the small cost of hiring a property manager is money well-spent for many property owners.

Keep the following in mind when looking to rent out your second home or property:

  • Regardless of the rental agreement, you will want to maintain integral coverage for the property including insurances, water, sewer, and possibly heat. This will prevent incident or loss later on.

  • Always work with a lease. Check out some sample leases online or ask a rental agent for advice.

  • Renting to friends and family can cause conflict and issues. Keep in business by writing up terms and conditions in the lease, and discussing the expectations with the prospective tenant prior to move-in.

Close it up

A third option is to simply close the dwelling up and leave it empty. This may parlay any damage or hassle that tenants could cause, and keeps things simple for the owner. The downside is that it doesn't allow for income generation as other options may provide.

Some other things to remember when closing up your property include these tips:

  • When looking at the budget required to simply close the door of the property, don't forget about the costs to heat and maintain the property. A tenant may help to defray some of these costs.

  • The best time to put a property on the market is when there is no one currently living in it. Use this time to get your dwelling listed if your intention is to sell.

Whether you decide to rent or close up your second home or income property, it makes sense to first discuss options with reputable management companies and rental agents first. This will give you a broader spectrum regarding the potential and possible earnings from the property before you make your final decision. Ask friends and colleagues for recommendations regarding reputable companies, like, in your region.