To rent your place or to sell it? It’s always a very personal decision, especially when it comes to deciding about a real estate that is important to you - whether it belonged to your family for decades, or was the first place you moved into as an independent adult or maybe something you inherited from a distant relative recently?
If you prefer a constant flow of smaller sums of money, or you need a big injection to start off with something completely different?
Is a business license needed to be a landlord?
These regulations vary in each country in Europe and around the world, so we encourage you to check the local laws before entering the business. Depending on the type of property, the length of the rental, the price and how you advertise it, these laws will also vary. Becoming familiar with these regulations can help you decide what kind of model is best in your case.
How to start a landlord business?
Once you decided to enter the business, you might wonder, how to rent out a room in your home? Below, we have a couple of tips for you.
Choose your target group wisely
Choosing your target group can be especially important to determine how often you want your tenants to rotate, how much work you’re eager to put in maintaining and servicing the place, but also what kind of income you imagine from it. There are two main groups we target on Flatio, and below you can find the pros and cons of choosing one of them.
Co-living, students
Now, there’s plenty of stories about disastrous outcomes of renting places to students - but these paint a very different picture from reality, which turns out to be much more reassuring.
In fact, students are considered by many most reliable and friendly tenants. They have a financial cushion, either from their parents or universities, that guarantees landlords regular payments if they offer an accommodation for students. They’re energetic and most often self-sufficient, working part-time to make an extra buck.
These characteristics make for a great candidate if you’re thinking of renting out a room in your house. Or eventhe whole apartment, as students often split the costs and move in together, so you’re also less at risk of not getting your rent every month.
Corporate accommodation
How to rent a room in your house for a higher price? For quicker turnover with a bit more work (cleaning, servicing, maintenance, probably higher investment in equipment of the apartment) you can try focusing on corporate housing or luxury apartments.
Is renting a furnished apartment a good idea?
Definitely! Even if it looks like a considerable investment, to begin with, it gives both sides an advantage. You can ask for a higher price, because of the costs you bore to prepare the place.
Tenants, meanwhile, especially those planning to move somewhere mid-term, are more likely to choose furnished apartments that require as little work as necessary. They’re not settling in the city, but they do want to enjoy the comforts of a homely life. It’s a win-win!
Is renting your home a good idea?
That depends on you! Many things will factor in here: the way you use your property, space you have available, the energy you want to devote to run this operation, the profit you imagine it will bring you, and if you need any extra money, to begin with.
But one can imagine, as a person with a house Austria, say in Vienna, renting out a room can buy time and freedom you always wanted.
How to build a landlord business?
- Do your research
- Consult the local laws
- Check the prices around
- Ask for professional help, when needed
- Prepare a business plan
- And learn as you go
