Starting a Home Rental Business for Property Owners

The home rental business is popularized by Airbnb and now it has become so widespread in virtually everywhere in the world. Are you interested in hosting? Let’s take a look at some of the things first before you decide to host.


Why host?

Airbnb hosting has become so popular and widespread in a relatively short amount of time. But aside from the popularity and the potentially profitable returns, why host? What are your motivations?

A lot of Airbnb hosts are travelers themselves. And I’ve seen met with people who, before the existence of Airbnb, have hosted travelers through Couchsurfing. These Airbnb hosts have “passion” as one of their motivations to host at Airbnb. Meeting people from all over the world without having to leave the comfort of your own country is one of the things why Airbnb is so popular with travelers. These types of hosts are part of the community of travelers who are looking to meet like-minded people. They sometimes offer Experiences as well in addition to their room hosting. But what type of host are you? Aside from the obvious money-making scheme, do you have any other reasons that are personal to you when deciding to host in Airbnb?

What’s the scale of your business?

Are you looking to rent your own house or apartment, or are you looking to do something on a much bigger scale? Are you simply aiming to rent your space, or do you want to max out your profits with a certain amount of investment? It’s extremely essential to have some sort of a vision of the scale of your business.

Building a positive review flow

Reviews are potential guests’ insights into your properties as well as your services. If your property is newly listed and does not have any reviews, then the best way to do attract guests is to state it as such. You can even do it with a clever marketing twist, “Newly listed properties, opening discount”. I’ve seen quite a few of hosts doing opening discounts quite effectively this way.

Building a positive review flow starts with communication. Start with being responsive from the get-go with your guests. Of course, feel free to ask for their reviews during the time that you communicate with each other. Airbnb will do this on behalf of you, once your guests’ booking is complete. But it does not hurt to ask your guests nicely. They’ll gladly do it, especially if you’ve been nothing but hospitable to them.

Establish a boundary for guests and for yourself

Boundaries that come in a form of “rules” are extremely important to make both parties comfortable. This is especially essential if you live in the house together with your guest. List clearly the things you expected the guests to do and not to do. Common examples are: smoking, partying, making loud noises past 10 pm, and so on.

Targeting your audience

Audience targeting is essential in any business model and not just Airbnb renting. You can target your audience in a number of different ways. Where is your property located? What type of house or room you have? Is your property located at a residential area, or at the heart of the city? Bottom line is, don’t try to sell to everyone. Know your target audience.

Business and Property – 5 Steps Repurposing Your House as Rental Property

There are many situations in which make you want to repurpose your house for rental property. You may need to move after marrying a native person while you already own a house and hesitate to sell it. Or, you seriously think about having a second income and are interested in the rental property. In order to prepare your house as generating money tool, you should pay attention to two aspects including physical and financial.

Business and Property – 5 Steps Repurposing Your House as Rental Property
  • Rental Permits

Permit’s requirements for rental property can be different based on the local policy. You are obliged to get permit, so you can use your house as rental property. Beside it won’t cost much, this permit is needed for safety purposes.

When you apply for rental permits, the local police will visit your house and check anything that can cause safety risks. You should make sure that the house has proper heating system, fine electrical, as well as adequate access to outdoor.

  • Property Insurance

You may don’t take serious about property insurance if you occupy the house yourself. However, it’s all different when you rent it. Because each time someone gets hurt in your house, you will have to take some degree of responsibility. That’s why insurance is really fundamental if you consider to repurpose it as rental property.

Say if a tree falls and damages the house along with its resident or a gas leak that would cause an explosion. Even though you are not the one who is fault, you still have to take some concern. Also, you should think about reparation to make it decent for living in. Those possibilities can really cause headache if you don’t own an insurance.  

  • Renovations Cost

In order to attract people to rent your house, you will absolutely need to do some polish measures to your house like re-painting, replacing outdated facilities and some renovations. Those upgrades will definitely add value to your house, so it can compete with other rental property. Even if you need to do some renovations, try not too overboard because it will affect the rental rate.

  • Rental Cost

In matter of deciding the rental cost, you should include all expenses to prepare your house as rental property including permits, insurance, renovations cost as well as maintenance during tenancy. However, you shouldn’t exaggerate with all those expenses. Instead of gaining all costs back in short time, you should consider it in long term. After you have a picture of your rental rate, make sure it isn’t too expensive comparing to other around your location.

  • Finding Renter

Before actually renting your house, you should understand the law and policy about rental property especially Fair Housing Laws. When you have prospective tenant, it’s better to check on their credit flows to make sure there will be no arrearages in the future.

If you talk to experienced landlords, you will find that there’s always problem with tenant whether it’s minor or major ones. It’s really challenging to discern if the prospective renter will actually be a good renter or not. Depending on intuition often gives you false alarm, so don’t be too attached to it.

After you have your renter, you will need an attorney to help you designing your own contract and application. But, if you won’t do such tiring legal procedure, there’s always another simpler option like property management group.

This option will work most effectively if you live far away from the rental property. They will not only take care of the paperwork, but they also handle the rental collection as well as maintenance if needed. You don’t have to be worried to face the renter since they will also communicate with them directly.

Benefits of Having A Property For Young Adults

Benefits of having a property at young ages are endless. As we know, every single person dreams of having property, including young adults. But, the prices of properties are getting more expensive nowadays. So that many people think a thousand times to own property. However, the benefits below will probably be able to make you more assured to own one.

Benefits of Having A Property For Young Adults

A Promising Investment

Assets in the form of properties tend to have increased sale value every year. Especially if the environment around the property is getting more crowded. Within 10 years, the property you buy today is possible to have multiple-fold sale value compared to the price when you buy it. Because a property, especially a house, is one of the basic needs needed by most people. An investment in the form of a property is very promising. Especially if you use the property to get additional incomes. For example, by renting the property or starting a business there. This way, you will be able to use the funds from the business profits or from the tenants to pay the installment fee every month.

Avoiding Rising Prices

As it is said before, the selling price of properties tends to increase every year. When you keep to postpone and wait to own property, it is the same with letting your dreamy house becomes more pricey. Keeping to save money until you are able to buy a property will be difficult to do. The best solution is by using the installment facility. By starting to buy a property with the installment facility, you will be able to prepare yourself better.

If you already have enough fund, at least for paying the down payment, then it will be better if you buy a property with the installment facility that is usually provided by banks. Especially if you are planning to start a family. By having a property especially in the form of a house, you will be calmer because one of your primary needs is fulfilled.

Motivating to Work Harder

Because of its very expensive price, not many people are able to buy a property in cash. For some people, buying a property with a big down payment will be quite a burden. Especially if they have to pay the rest of the price for a long time. But if you have a positive mind, this should be a motivation for yourself to work harder or get additional incomes. So that paying the rest of the property price is not really stressing.

Because the price of a property is getting more expensive from times to times, it will be better if you plan to own property when you are at young ages. When you are still young and productive, you are able to do various works to get incomes. Because the energy you have is still big and you are still full of spirits too. You will feel more comfortable in the future. Above are the benefits of having a property at young ages.

Tips to Start A Business At Young Ages

Starting a business at young ages will give you many benefits. You will know the struggle to make money on your own, how to run a business, how to make financial reports, and many more. However, most teenagers and young people are getting confused about how to start a business. By following these tips below, starting and running a business is not hard anymore.

Tips to Start A Business At Young Ages

Have Clear Visions & Missions

There is no need to run a complicated and difficult system. Try to start a business which is simple and easy to run. But, you still need to have clear visions and missions related to the business. It is essential so that in the future, you can run the business in a clear direction. The visions and missions will be very helpful for you to keep your business in the clear path and goals, even when you are having hard times running the business.

Choose A Business that Matches With Your Passion

Do not start a business that you do not understand well because it will be difficult in the future. A business does not always run well. There will be many obstacles that you will meet. And it will be so hard to overcome those obstacles if you do not understand it well, especially if it is completely different from your passion. It will be different if you run a business that matches with your passion. You will have a maximum mental readiness to face the problems that will happen in your business.

Understand the Possible Risks

Every business has risks, both on a small scale or even the biggest scale. Make sure you understand well about the business you run and the risks which possibly happen. This will make you are more prepared in facing and overcoming those risks.

Plan & Keenly Plan the Business

Making a good business plan is very essential. So that you will do all business activities in a clear work system. Not only good but you also have to make a business plan that makes sense. And another important thing is that you have to keenly run your business. Do not easily give up.

Get Relations that Can Support Your Business

A business will not be rapidly developed if you do not try to struggle in maximally establishing it. In order to make your business established, you will need vast relations and networks that can support your business. Try to have strong networks and relations since the beginning so that the business you run can maximally grow.

Maximize Marketing and Promotions

In order to get profits, it is a must to maximize your product marketing. The higher the sales, the higher the profits that you can get. So in order to support this, you will need various proper promotions. If the promotions run well, it will give positive effects to your product sales. As the result, you will get big incomes. So, make sure you apply this one of tips of starting a business at young ages.

Understanding the risks and weighs of property investing

Investing is not only about gaining profit but also money allocation. Instead of focusing on how to make money, investing focus more on how to allocate money the right way so that the profit will be able to support every stage of your life. Property investing is not always for singles but also for those who are building a family. In fact, investing in property can be the right path to help supporting your finance to raise your kids. However, jumping blindly to property investing is not wise either. First things first, you need to know the risks and weigh. Thus, you can calculate your move and make wise decision.


Understanding the risks and weighs of property investing

All about property investing

There are wide ranges of benefit when it comes to property investing. If you success in this industry, you will be able to support your family financially well. Property investing is a long term business which its success cannot be achieved overnight but has potential to set you up for life. You can aim for short, quick profit or passive income. However, knowing the risks and weigh is the first thing you need to do and here they are:

  • Basically, every business needs money even from the beginning. You need to estimate initial cost as well as for the ongoing. To start property investing, you need deposit. During the investing, you still need money for maintenance, fixing, etc. make sure to choose the source of money wisely. There are various lenders you can choose. However, make sure you know the risk of your choice.
  • Vacancy is another risk when it comes to property investing. There is always risk of vacant period you will potentially suffer from. During vacant period, you need to think and calculate about the repayments. You need to make the right strategies to cover all the expenses when you are in this period during your investing.
  • The next risk and weight is interest rate. This is quite unpredictable with few way out. When the rate increase, you need to pay more money. Some of investors choose to increase their tenants’ rent. However, it is not always the best solution. It may cause another problem especially when you increase your tenant’s rent suddenly.
  • Unexpected expenses are what investors caught off guard the most. It is easy to lose focus when it comes to planning finance for your property investment. The main focus is often on gaining high profit especially when your subject is to sell the property. During this period, sometime investors forget about the unexpected expense. Thus, you need to consider this risk from the beginning if your focus is to sell your property investment.
  • There is always risk of situation when you are short of cash. There is also risk of your tenant being late in rent payment. It can cause you some hassle especially when you are short of cash. There is also period of time when you have to wait until you find buyer before making any profit you should consider.