Becoming a landlord can be highly rewarding and exciting, but first you must know the right steps to take. Find out what you will need to know to become a successful residential rental property owner property right now. The following five tips may help you become a successful landlord:
1. Advertise and attract new tenants to your rental property
If you are just becoming a landlord and starting out with a vacant rental property, the first important thing is to find a tenant for it as soon as possible. Every day that your rental property goes without a tenant, you will be losing valuable rental income.
Effective and proven methods of netting new tenants include advertising with the local media, putting up drive-by signs, word of mouth recommendations and hiring an experienced real estate agent to do it for you.
2. Screen all your potential tenant applicants carefully
Every experienced landlord and property manager will agree that picking the right tenant for your property is vital if you want to avoid a world of trouble later on. What you will need are people who are able to pay rent on time and stick to the terms of your rental agreement.
First, you should interview your tenant over the phone and have him or her complete an application form. For those whose applications look promising, it’s time to meet so you can show them around your rental property and observe them more closely.
It’s also highly recommended that you run a credit check on someone before inking the rental property with him or her. That credit report will reveal whether the potential renter is likely to be a reliable paying tenant.
3. Manage your tenants and handle any problems and disputes
Collecting rent from tenants is perhaps the most enjoyable part of being a landlord, but you will have to arrange a convenient and effective way of collecting it. While cash and checks are the traditional and popular methods for collecting rent, you can also accept your rent online through Paypal.
Common and painful problems faced by landlords include late rent payments, property damages caused by neglect or abuse, conflicts with neighbors and illegal activities carried out on your rental property.
4. Repair and maintain your rental property in habitable condition
Becoming a landlord includes having to maintain your rental property in a livable condition according to local health and safety standards. This means learning to make simple repairs by yourself or knowing how to hire a reliable repairman to do it for you.
It’s also important to know whether you or your tenant will be the one footing the repair bills. Never be misled into thinking that the landlord has to pay for everything. If the damage is caused by your tenant’s neglect or abuse, he or she will be one putting out the money. On the other hand, you will be responsible for damages due to daily wear and tear.
5. Ending your lease agreement and evicting tenants if needed
Depending on your area’s real estate laws and the type of tenancy that you have, ending your lease correctly is important for staying out of any potential disputes. You will generally have to give your tenant a written notice in advance if you want them out of your rental property.
Eviction is a nightmare that you will want to avoid when becoming a landlord, but sometimes it’s the only way out. The most common and valid reasons for evicting tenants include non-payment of rent and the repeated breaching of rental agreement terms.
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