There is much more to being a good landlord than simply owning and renting a property out to tenants. You should see it as running a business where tenants are your customers, and your property is the product. If you are new to being a landlord, you will need to understand some important basics before putting your property on the market and looking for tenants. Here are five essential points to think about as a new landlord.
1. Make Your Property Suitable for Tenants
Your property must be in a suitable condition for tenants before you put it on the market. This means tending to any repairs that could disrupt the everyday living of a resident in the property. Check that all utilities are fully functional and up to regulation. Eliminate any safety hazards and put safety measures in place such as fire extinguishers and smoke detectors.
You should also make the property as appealing as possible for the type of tenant you want to attract. Decorate according to general tastes so tenants can easily imagine making the space their own.
2. Take Responsibility for Legal Matters
Although there is a lot of legal paperwork to keep on top of as a landlord, it seems more daunting than it truly is. Important details like insurance, property tax, and housing laws should be at the top of your list of priorities. These considerations will protect both you and your tenants from possible legal complications, should they arise.
3. Set a Fair Yet Competitive Price
Accurate valuations are difficult to obtain since the rental market, as with the housing market in general, is so prone to change. However, house valuations are still essential to help you know how much you can charge your tenants. When you know what your property is worth, you can make a more informed decision about what your tenants should pay, whether that's weekly or monthly. Consider how much similar properties in your location are rented out for and how competitive you want to be while still making a reasonable income.
4. Find a Property Manager
If you want to save time and reduce stress, you can recruit a professional property manager or agency to maintain your rental on your behalf. Read reviews to make sure you choose a property manager with plenty experience and a good reputation. For those interested in expanding their portfolio, exploring opportunities in Wholesale Real Estate can offer additional avenues for growth and investment.
5. Be Discerning About Tenants
To protect your finances and peace of mind, it's important to vet your tenants before signing the lease agreement. If you only want tenants who don't smoke or have pets, be specific about this in your marketing materials. Utilizing tenant screening services to request employment information and previous landlord references is common when deciding who to let your property to.
You need to be confident in planning, managing finances, and communicating if you want to be a landlord. Research the rental market in your area and learn what tenants are looking for. A property manager can help you stay on top of everything and keep your property in good condition for tenants. Mastering these five basics will set you up for a bright future as a successful landlord.
