How to rent out an apartment? Get your apartment ready

Pack your bags and rent out your apartment? Unfortunately, these things don’t happen so quickly, because it is wise to do something in advance for the benefit of both the landlord and the tenant. ELUM real estate agent Merit Reigam shares recommendations.

“Where is the most reasonable place to invest? Still in real estate,” believes Reigam. “A lot of people rent their homes, but a lot of people also buy apartments with the aim of renovating them, furnishing them and renting them out.”

When renting out your home or buying an apartment for investment purposes, it is important to have a specialist advise you on the sales process. According to Reigam, ideally everyone should have their own personal real estate agent. “Probably, everyone knows at least one person in their circle of acquaintances who deals with real estate or who has just recently acquired real estate and can recommend someone. However, if it doesn’t bear fruit, it’s worth checking out, for example, the website of the Estonian Chamber of Realtors,” she shared recommendations for finding a real estate agent.

Repair or replace the necessary equipment

The realtor gives advice before renting out the apartment, which still needs to be purchased or replaced in the apartment. “It is worth making sure that all comfort items are present, intact and in working order. Nowadays, it is important to have a washing machine with a dryer and a dishwasher in the apartment. It is definitely worth investing in home appliances for rental apartments,” states the real estate agent. It is also worth making sure that the apartment has a wardrobe and storage space. In the absence of storage space, it is important that every square meter in the room is used smartly.”

According to Reigam, there are often situations where an apartment in a beautiful building is bought and rented out, but savings are made at the expense of furnishings. However, the price is set similarly to other rental apartments in the same area, where more investment has been made in the furnishings. “Furnishings play an important role in the rental market – a living room without a sofa cannot be sold. If you have to do it, then do it properly, because the more things that add comfort to the apartment, the greater the value of the apartment.”

Eliminate the deficiencies

According to Reigam, many apartments have minor cosmetic flaws or natural signs of wear, but every scratch is not necessarily a defect. However, if one is aware of the existence of defects, according to the realtor, they must be eliminated in advance or the tenant must be informed of them. “It helps to save time for both you and the tenant, to avoid constant calls about something leaking or not working. The transparency of the transaction is very important and honesty leads to the goal,” she stated.

However, if the apartment is really old and tired, according to Reigam, larger-scale renovations have also been done. “If you want a higher rental price, it is worth tidying up the apartment first. If there is no financial possibility for this, a thorough cleaning, for example, is also very helpful.”

Make the rooms shine

According to Reigam, it would be worthwhile to start by cleaning the apartment, first of all, so that the photos of the rental ad are of high quality. “When everything is clean and nothing stands out, the pictures also look much better. Of course, a tidy apartment is also important for the apartment to look presentable during showings.” According to the realtor, a comprehensive professional cleaning service is the best option. “However, if you feel that you are a very good cleaner yourself, you can also go this way in terms of saving money. However, a professional cleaner notices nuances that you might not notice yourself.”

If the apartment is handed over to the tenant clean, the owner has the right to get the apartment back in the same condition. For this purpose, the condition of the apartment is also fixed in the transfer deed. “The sign is also left in the contract – if the apartment is not given back as clean, the owner has the right to claim back the cleaning money from the deposit. Often, the tenant also allows to deduct it from the deposit, for example, if there is no time to tidy up the apartment themself. This is a matter of negotiation, but it must be included in the contract,” said Reigam.

Do a home inventory

If the realtor represents the apartment, they first ask the owner to make a list of the more expensive items, where they must be described in detail. If the owner is away, the procedure will be carried out by a realtor if necessary. “If possible, it’s worth keeping checks that help prove the value of the items in the apartment. If the owner wants the list to be more detailed and also include, for example, all kinds of kitchen accessories of lower value, we will do that. The more accurate the overview, the easier it will be to dispute the damages later.”

In the deed of handover, the items in the apartment are fixed and pictures of their condition are added. “It protects both parties, not just giving the owner the right to demand compensation for things. For my part, I would encourage people to read the deed carefully before signing it, because upon acceptance of the apartment, the deed will be reviewed again to make sure there are no deficiencies.”

Ensure security

Security is an important aspect from both the landlord’s and the tenant’s perspective. For example, you may wonder if the locks should be changed before a new tenant moves in. However, according to Reigam, this is not so relevant when renting out an apartment, but rather a feeling.

According to Reigam, changing the locks depends a lot on, for example, how old the apartment is and what its history is – whether there have been many different tenants, what their background is, or whether the apartment has previously been rented out, for example, on Airbnb. “In the case of older keys, they can be replaced for peace of mind, but this is definitely not a condition,” she said.

According to the realtor, key cards and coded smart locks in use today are very secure, but even in newer homes there are nuances to pay attention to when ensuring security. “The apartment should definitely have home insurance. Also a mandatory smoke and, as necessary, carbon monoxide detector.”

Read more: 6 tips to help increase the value of real estate

The article was also published in Kodu.Postimees digital edition