General

Investing in real estate can be a profitable method of generating additional wealth. However, to generate returns, it is essential that the properties be rented out. Some individuals experience stress and anxiety related to renting out properties, but this is not necessary. It is critical to be well-informed about potential risks and how to mitigate them.

Common concerns and related solutions:

1: What if the tenant does not pay? Having rent arrears is undesirable, but it can happen to any landlord. It is important to quickly report a non-paying tenant to a collection agency or bailiff. These agencies act in the landlord’s interest without emotional involvement. In this way, a solid file is also built up, which is useful in the event of eviction in case of long-term rent arrears.

2. What if the tenant causes damage? Damage to a property can occur, but this risk can be mitigated by careful tenant screening. There are initiatives, such as Rent Check, that allow landlords to insure their premises against, for example, hemp damage, based on an approved rental file.

3. What if I don’t get the tenant out of the property? Since the amendment to the Rent Act in 2016, landlords are allowed to enter into fixed-term contracts. This means that a landlord can enter into a contract for a minimum of 6 months and a maximum of 24 months, where the tenant can be informed towards the end of the contract that the contract is expiring. This should be done with 1 to 3 months’ notice. This approach provides landlords with more control and avoids recourse to rent law protection.

To select the right tenant and ensure rights, it is essential to choose the right type of lease. Fixed-term and open-ended contracts exist, each with specific terms and conditions.

Finally, similar to a car, a home requires regular maintenance. During the rental period, the tenant is responsible for minor maintenance, while the landlord deals with major maintenance. When changing tenants, it is recommended that the property be thoroughly inspected and any repairs made so that the property remains in good condition for new tenants.

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