Most real estate investors rent houses to make a living. Just like any other investment, this investment also needs to be properly done to get the best results. It is difficult to rent housing space. The reason for this is the easy availability of finance. Almost everyone can own a home today because of which renting does not make complete sense. However, there are always people who move continually on job or because of personal requirements and are interested in renting a house. Those that are short on cash also prefer to rent an apartment.

To rent property you need to understand the factors involved with renting. There are numerous factors related to your property, its condition or the improvements you need to make in it. Or they could be about the prospective tenant. If all these things fall in place, it is cakewalk to rent houses. All that is left is sealing the deal and signing the dotted line to riches!

Property Related Factors

Let's understand the property related factors that might play a part in the entire process.

Add amenities: Minor improvements in a property can add a lot of value to the property. Tenants appreciate this and therefore you can rent houses faster and more easily. For instance, let's say you were to rent your property to students. Of course, students would be interested in sporting activities. So you could just add a ping pong table or a snooker table. These will not cost you much and there will be students making a beeline to rent houses from you.

Damages: It is important to know that minor damages or problems in the property can also make lives miserable for tenants. It can be a serious turn off for tenants keen to rent houses. Some of the most common damages are leakages, problems with the common wall or damaged furniture. It is important to understand your target market. The era of "rent it anybody who walks in" is over.

Successful investors study demographics carefully before they decide on whom to rent. They then make changes in their property so that it is more lucrative for them.

Maintenance: In case the prospective tenant is in love with your property but wants to negotiate, it is a good idea to do so. Consider your net rent. In case, you pay for mowing the lawns or for keeping the property clean, ask him if they can do it. Maybe they are college boys and can do it for you if you decrease the rent. Or maybe the family has grown up kids and can assign the chore to them. Let them take over the responsibility and pay your net rent.

Tenant Related Factors

After you have the perfect property it is equally important to find the right tenant. Conduct credit checks. You could also look at previous landlords and ask them if these people are good tenants. Make sure your rental is not more than 30% of their income. To avoid defaults, charge an upfront payment.

After you have all the factors in place, you will most likely be a successful real estate investor. Just rent houses and watch the money flow into your checking account.