How To Find The Perfect Apartment To Rent Out
The real estate scene in Malta is currently teeming with activity: there is a wealth of apartments on the market and a huge demand from tenants for apartments to rent. These two factors make it a great time to invest in an apartment and rent it out. But that’s not to say that any apartment will do. And if you’re new to this, then read on to see how to find the perfect apartment for rent.
Match the tenants with the apartment
Before parting with your hard-earned money, it makes sense to do some thinking to see what options make the most sense for you.
Decide what kind of tenants you wish to rent to and whether for short or long terms. You may choose to rent to families or single people who have come to the island to work or study. You could also consider renting the place out as a shared residential place, where you rent out single or double bedrooms to different individuals, having shared use of the kitchen, living room and bathroom. This makes sense, particularly in towns that are close to universities or language schools.
People have different needs from one another and hence require different living spaces. Families will need bigger apartments and more bedrooms from single individuals, and if the property comes with a garage, it is even more attractive for prospective tenants. And if you choose to rent out separate rooms in an apartment, make sure that the rooms, after making the necessary alterations, can be turned into bedrooms of a comfortable size. Also ensure that the living spaces are big enough to accommodate the total number of people staying at the place.
Another deciding factor could be how committed you are to the venture. Short lets and the letting of shared residential spaces require more commitment and time from your end as people will come in and out often (the maximum stay is six months), while long lets mean that the tenants will be staying at the place for a longer period, often years.
The amount of maintenance from one type to another also varies. People who are renting for a long time are usually more committed and therefore will take better care of the place where they are staying, meaning there is less maintenance needed during the tenancy period. The opposite is also true – people staying, in short, let apartments do not feel any sense of personal attachment to the property; this also applies to shared residences. If the tenants change regularly, expect more maintenance work and to replace damaged or missing items more often. The higher rent for short term lets, in fact, reflects this – more on that further down.
Choose the location
First off, consider buying a property which is not far from where you live. This is because, as landlord, you might get a phone call from the tenant and need to go to the rented apartment at short notice. In that case, it helps if you do not find the distance an added burden.
Once you have decided on the kind of tenants you would like to rent out to, you can start focussing your search on particular towns. Families will choose quieter towns, with a short commute to schools and work hubs. People working in the hospital or studying at University will look for apartments within walking distance to avoid transport. On the other hand, single people who come here to work, might opt for smaller apartments or shared residences in areas which typically have cheaper monthly rent.
Decide whether the property is a good investment
If you have found an apartment that you like and which will fit the purpose, find out whether in three years, or at most five, it will start giving you a return on your investment.
Find out, on our sister page, Quicklets.com.mt, how much rent other landlords are charging for apartments similar in size to the one you’re interested in and come up with a rate that you plan to charge per month. If you’re taking a bank loan to finance this project, from the monthly rent you need to deduct any monthly repayments owed to the bank. Also, don’t forget to factor in the tax due on the rent. These are non-negotiable and obligatory, and therefore due to the institutions.
Whatever is left of the monthly rent will start paying you back the money you will need to spend on upkeep and maintenance so ensure you have a realistic budget for this. What’s left after that will be yours to spend or invest as you wish.
Speak to us
Whether you are new to letting, or you would like to expand your portfolio, speak to one of our agents at Zanzi Homes. With one of the largest databases on the island, and years of expertise in the market, you can be sure that we will do our utmost to help you make this a success. More information is also available at https://www.zanzihomes.com/