If you are a real estate investor or have property to let, then you are in real estate as a business with the goal of making money. As a homeowner who has decided to make rental income by letting out your property, one decision you have to make is what lease period to offer it for. This will affect the number of people who may be interested. In Ghana, lease periods of one to two years, requiring lump sum upfront payment, is typical, but there is good reason to go the other way and offer your rental for as short as a one to three month renewable lease. Let’s explore 3 of the key benefits of short let rental.
Rent property out quicker! Unless your property just has the magic formula of best location, most sought after size, great amenities and all at perfect price, then it may just not stand out among the thousands of property also available on the market. Many properties are leased at one or two year periods and lay empty for months and even years. Avoid this by being more flexible with your offered rent period. When seekers see that a property has sat for long months and years, it tarnishes the image of the property and others wonder what’s wrong with it. Be open to short let rental, like allowing someone lease for 3 or 6 months at a time, and you’re likely to see more leads and get a tenant much faster.
Enjoy steady income. Sure the thought of getting a windfall of one or two years rent all at once is sweet. This is great especially if you honestly do need a large sum of money for something. It can be a problem however without a specific plan for it, as mismanagement of this large sum of money might mean you spend it much faster than you realise. If you rent your property out in shorter spurts – 3 or 6 months short let, for instance – then you’d have money coming in quarterly or at least in two halves for the year. Short-let rentals offer landlords the opportunity to work on their properties in bits with each payment as opposed to waiting long periods to upgrade the property. You can in turn invest these funds in other business ventures to multiply your streams of income.
Reach a wider customer base. The property seeker landscape of Ghana has evolved over the years. Now more than ever, there are younger adults looking to move into a place of their own to be independent, several expats coming to Ghana for brief contracts of a year or shorter and tons of average citizens who would appreciate having more options for short lets they can afford. As a landlord, you want to also have a good number of leads so you can also be selective in who you let rent out your home. You’re spoilt for choice with a greater opportunity for multiple offers, giving you the luxury of choosing only the best offers and not being ensnared by desperation. Short lets are a great strategy.
Think you can be a landlord? You have to be smart as a landlord in order to let your residential property listing stand out, attract serious seekers and ultimately rent it out quickly in order to make money. Renting your home out for a few months at a time increases your chances of success all around so consider a 3 or 6 month renewable short let for your property.