Having your own property for rent can bring you an indefinite stream of income that many people want. However, if you are new to the game, it takes some time, patience, and capital in order to succeed. If you are not a well-organized landlord, you might not be able to find trustworthy tenants that will take care of your property in the long run.
Are you a new landlord? Here are some tips that can help you in becoming a good landlord:
Tip 1: Find the Right Tenants
Don’t just trust the face of your tenants as appearances can be deceiving. List criteria of what you are looking for in tenants and write it on paper. Screen the applicants carefully and look for signs if they have been involved in criminal activities. You should also make sure that your tenant can pay you on time and they can afford the monthly rent. Look for documents such as outstanding debt, credit reports, and eviction history. If you have done a proper investigation of their background history, you will have fewer headaches later on.
Tip 2: Understand the Legal Laws in Your Area
There are a lot of laws that you should know about when it comes to renting. There are anti-discriminatory laws that set the standards for tenants and landlords. If you don’t understand some of the terms that you read, you can consider hiring a lawyer. Another option for you is to get a property manager who has extensive knowledge in your area when it comes to renting. Knowing your rights as a landlord as well as your tenants’ rights can save you a lot of time and money from legal disputes that can possibly arise in the future.
See also: The Mistake Smart Landlord Never Makes
Tip 3: Inspect your Properties Regularly
Before you hear any complaints coming from your tenants, make sure that you are already on your way to address possible issues such as non-availability of Wi-Fi, or leaking faucets. There are times where you need to undergo seasonal inspections to make sure that the tenants did not already destroy some of the walls of your property. You need to address small problems before they blow up into big ones.
Tip 4: Have Penalty Fees
When you let the very first tenants rent on your property, make sure that they understand that not paying on time will lead to late payment penalties. Having late fees will make sure that the tenants will not neglect to pay their monthly dues. A tenant who is not willing to pay rent on time should not be on your property in the first place anyway so you have the right to charge late payment fees.
Tip 5: Be Insured
Home insurance can be different from rental property insurance. In this case, make sure that you are protected in case a tenant accidentally sets fire on the whole property. Be prepared by getting liability insurance so that you won’t end up with a burnt property as well as paying the damages for your other tenants. Do not forget that tenants have to provide you the proof of their insurance as well.
See also: How to Be a Successful Landlord
Being a good landlord takes your time, but it guarantees that your property will be safe and your tenant will be happy. If you believe the time and finding qualified tenants would be the issue, it is better to hire a professional company to manage your property.
Do you need help or learn more information about the management of your property?
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Because with Bolld Real Estate Management being a landlord has never been easier.