4 Things You Should Consider as you Seek to Start a Rental Business

Mukonki Mukonkela

Mukonki Mukonkela

Host of the Ndalama Insights Business Show.

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4 Things You Should Consider as you seek to start a rental business

I discuss 4 Things You Should Consider as you seek to start a rental business. Starting a rental property business isn’t all that different from just about every other entrepreneurial endeavor. Investors simply need to identify several key elements prior to getting started. So what are some considerations needed for this endeavor?
4 Things You Should Consider as you Seek to Start a Rental Business
David Kapalu

Whose Today’s Guest?

 

David Kapalu is an experienced Real Estate Investment Consultant with a demonstrated history of working in the real estate industry. Skilled in Real Property Investment, Transformational Life Coaching, Business Development, Cryptocurrency Investing, Team Building, Coaching, Mentoring and Succession Leadership Trainer, Network Marketing Professional and Trainer.

https://www.linkedin.com/in/davidkapalu

 

4 Things You Should Consider as you seek to start a rental business

Rental Property Business and Making Money from It

This I s a business that involves one renting out their properties to other people with a view of earning some rental income which is referred to as residue or passive income.

Rental Property Considerations

  • Ever Increasing Cost of Building Materials

Building materials prices keep on raising by the day. The solution to this situation though is finding a cheaper source of those materials. Take your time and locate who’s is selling good quality building materials and for a good price.

  • Attracting Potential Clients

There two ways that this can be achieved, firstly one will have to build good quality properties and price the according to income of his/her target market. The second option is to buy property in good condition with tenants already available.

  • Method of Financing

-Bank loan \ Mortgage

this sort of funding allows you to have funds readily available to acquire   property or begin building right there and then. If you have already identified an already established property, the loan can afford you the chance to purchase and begin to create income in a short period of time as you can quickly place in tenants.

The down side though is you will have to start repaying back what you owe.

-Cash

Allows you to invest in building and recoup what you have spent with no worries of paying a bank or creditor.

 

Role of Real Estate Agents

It is possible that the property rental business is not the only gig that the property owner has hence the need for Real Estate agents. These agents play a critical role in:

  • Saving Time

These agents can help you save time as a property owner. They help with marketing activities and searching for clients hence giving you the chance to focus on other matter hence saving you time.

  • Provision of Information

You may be new to the rental business and are not aware of what the pricing range is for a particular area where your properties are located. Real Estate agents can help you with that by providing you with various information on comparable rent values.

  • Out sourced property managers and property administrators

 

Dealing with Dishonest Real Estate Agents

To avoid such a situation, always ensure that you deal with registered agents. The beauty of doing so is when a registered agent gets into an act of misconduct there is a disciplinary committee that actually sits and disciplines the agent compared to street agents who vanish into thin air. A list of registered agents can be accessed from the Zambia Institute of Estate Agents.

Key Insights:

  • Get mentors and network with people that are already in the rental property business. You can learn a lot from people that have already been involved in that business.
  • Treat the property rental business as a business and learn to keep records.
  • Always seek to deal with registered real estate agents in your dealings as they can be disciplined in a case of misconduct.

 

“In business, always find a source that offers quality reasonably priced materials”                      

We would love to hear from you. You can participate in this conversation on social media and in our comments section below. Your input is valuable to other.  

Explore these Resources

In this episode we mentioned the following resources: Zambia Institute of Estate Agents

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Mukonki MUkonkela

Mukonki MUkonkela

Mukonki was inspired to start the Ndalama Insights business show in 2016 to share knowledge with business owners who are just starting or growing their business and are struggling to get answers to challenges they may be facing in their business.She believes with the right insights and skills you can overcame any obstacle on your way. And so the Ndalama insights business show was inspired from this belief.

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