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5 ways to avoid rent loss

Avoid Rent Loss

Buying a flat or a house, it’s the kind of investment just about everyone dreams of. And rightly so, as real estate investments have proven to be very smart and sustainable. For many, it is a purchase to make use of it themselves – and thus live in it themselves, while for others it is more interesting to rent it out to generate an extra income. Still, there are pitfalls that will cause rent loss. Here are 5 useful tips to avoid that money loss. 

1. Plan your own time constructively
2. Map out all possible rental issues
3. Avoid large damage costs by drafting a clear contract
4. Be prepared for unforeseen circumstances
5. Make sure you have proper insurance

Plan your own time constructively

One of the most common reasons why landlords suffer rental losses is the ‘time is money’ principle. After all, a lot of time goes into renting out a flat or a house. And that time also costs money. Searching for and finding suitable tenants, sorting out unforeseen damage and circumstances, the rent not being paid on time, the co-owner’s meeting you have to attend… Whether you take care of all this yourself or have someone else do it for you, the number of hours spent on all these things costs time and consequently money.

Map out all possible rental issues

Anyone who rents, will occasionally face ‘rental woes’ or rental problems. First of all, finding the right tenant, who then also pays his or her rent on time and standing, is a quest. By the way, did you know that some 67% of all homeowners have had problems with unpaid rent? That literally costs you money, as well as time to put everything back in order.

Time that can take up to 9 months (!), according to research itself. Assuming your property’s rent is €750, and you are therefore left without rental income for all that time, that will quickly cost you €6730. As the owner of that property, that can quickly put you in financial trouble.

Avoid large damage costs by drafting a clear contract

“You take better care of what is yours, than that of another”. It is not something we consciously propagate as human beings, but it is something we easily allow ourselves to be caught by. Even when renting out a house or flat, this is, unfortunately, often the case. After all, whether you like it or not, breaking something can happen quickly.

Are the walls of your flat or house damaged or discoloured after the stay of one of your tenants? Or are you dealing with a damaged shower or a malfunctioning kitchen sink? Often, the cost of these damages is a lot more expensive than you might initially think, especially if you want it fixed urgently.

Be prepared for unforeseen circumstances

The next reason for rental loss is unforeseen or natural damage. Fortunately, we encounter very few cruel natural phenomena in Europe, but it is hard to avoid water damage from excessive rainfall or eye damage from hailstones, for example. Even a simple water leak or a crack in the window can cause huge costly consequences.

In addition to damages, necessary renovation costs also mean that you have to set aside (unforeseen) budget.

Make sure you have proper insurance

Have you entered into an insurance contract but discover snags? For many, that discovery only comes when it is already too late. And yes, it happens a lot.

So are you taking out an insurance contract? Then really check everything, including the small print. Because they could well cause you to miss out on compensation.

Are you new to the rental business and don’t know how to go about things? Immowi knows what to do! We’ll be happy to help you.

Immowi Assistance

There is often an invisible wall between marketing and sales. Companies invest in marketing campaigns to generate leads, but do not take the right actions to turn those leads into customers. To remedy this shortcoming, the strategic online lead generator Immowi is adding a new extension: Immowi Assistance. Until now, we delivered high quality leads thanks to online marketing, but with Immowi Assistance we significantly increase the chance of these leads actually becoming customers. Thanks to this approach, companies that do business with us know how to convert their leads and have a platform where the leads are offered on a silver platter, ready to be converted into valuable customers.
Extremely result-oriented
We could make it easy on ourselves and be happy with just bringing in high-quality leads. But it’s frustrating when your hard work doesn’t follow through. Immowi’s great strength has always been that we are very results-oriented. Many marketers have a reputation for selling hot air, because they can’t substantiate their returns. We did that right from the start, and that’s why we were able to grow from one to more than 10 full-time employees in a very short period of time.
With MyImmowi we just go one step further than what classic lead generators do. We go to the point where a lead becomes a valuable prospect. We help our customers convert their leads into customers.
Entrepreneurial mindset always in mind
MyImmowi builds the bridge between marketing and sales. We Make it as easy as possible for the client to contact the lead. You have to keep them warm. If you let a few days or even weeks pass between the moment a lead shows interest in your product and the moment you contact that lead, you will lose him. Then your success ratio will remain low. So, we try to immediately set an appointment in the diaries of our clients’ salespeople. You have to strike while the iron is hot.
Letting sales people do what they do best
Sales people like to sell, but they thoroughly hate administration. They keep track of their leads, their appointments and their deals in Excel, or even with pen and paper. They only keep track of their own prospects. Many companies do not have a sales pipeline. So, you risk sending a quotation to a customer after a successful meeting, but ultimately missing the customer because you forgot to follow up on the quotation. You’re almost done, but because of the lack of a decent digital process you miss out on a customer – and therefore also on turnover.
We pick the low-hanging fruit for our customers. We automate the entire process from lead to customer, and put it into one clear dashboard. This way, as a business manager, you can follow everything from A to Z. How many leads does a campaign produce? How many of those leads drop out along the way? How many become customers? What stage is each lead in? The personnel cost of sales people is very high in many companies. If sales people do not lose time calling leads and recording appointments – which we do – they can focus on what they are really good at. And that is still selling, closing deals.
Measuring ROI to the euro
We bring marketing and sales under one roof. That way, you can make your campaigns much more effective. Imagine that your campaigns for one brand on Facebook and on Google both generate 10 leads, but that 8 of those 10 Facebook leads become customers and only 2 of those 10 Google leads. If you’re purely marketing, you won’t get that information and so you’ll continue to put the same amount of effort into Facebook and Google.
If you also include the sales part and you do get that information, then you can turn the right buttons, redirect your budgets and generate much more turnover.