Barbados Rental Property: Flexibility Brings Success
In today's highly competitive real estate market landlords can struggle to get properties rented at the rate that they want. For many this creates a dilemma. Should they continue to wait for the right tenant who is willing to pay what they're asking? Or should they consider reducing the rental rate and get a new tenant in the property as soon as possible? Of course there are advantages and disadvantages in either approach.
Waiting allows the landlord to meet the financial goal that they have identified as satisfactory for occupation of their property; thus providing an acceptable return on their investment. However, in the current market, there are many options for tenants to choose from at comparable or lesser rates. As a result, holding fast to a fixed rental rate may result in keeping a property unoccupied for lengthy periods of time. It should be noted that during that period, the property still needs to be maintained. The grass needs to be cut, the pool cleaned, pesky pests controlled, even the simple task of checking on the property to make sure that things are safe and in place requires time and accrues costs. So while waiting for the right tenant, the landlord faces the challenge of spending money on maintenance of a property that is not generating income.
Comparatively, adjusting the rental rate or including additional features for the fixed rental rate can result in a tenant moving in to a property within a short period of time. While this may mean that the landlord is getting less than they may have identified as ideal, the property is occupied and some level of income is generated.
Each landlord has to come to their own decision on what they prefer to do. Over the past two years in particular we have observed that those landlords who are willing to be flexible have been the most successful. In this YouTube video, Terra Caribbean Barbados Real Estate Agent Karyn Rezende discusses the importance of flexibility and compromise for both the landlord and tenant when renting a property.
Indeed not only does flexibility make for happy landlords, but also for happy tenants. A happy tenant is more liable to take better care of your property and renew their rental contract. This not only provides a continuous source of income but less hassle for the landlord.
Have you rented a property recently, either as a tenant or a landlord? Tell us about your experiences!