Everybody dreams of having their own home – not to mention, an extra two or three properties they can rent out on the side. Getting on the property ladder can be a very lucrative investment. However, running your properties as a business can provide you with even more wealth than you ever imagined.
Becoming a landlord is not as simple as handing over the keys, wishing your tenants good luck, and waiting for those monthly checks to roll in. On the contrary, there is a lot of hard work that goes into being a landlord and it’s a job that should be taken very seriously.
If you’re thinking of renting out a residential or commercial property for the first time ever, but you’re not entirely sure of all that this entails, this is the perfect article for you. In this blog, we’ll cover everything a new landlord should know…
Research Neighbouring Properties
If you want to attract the best candidates, you’ll need to price your house adequately. The best way to do so is by researching neighbouring properties and adjusting your prices to a competitive range.
Create a Quality Listing and Screen Applicants
Similarly, you’ll need to create a high-quality listing with accurate pictures and descriptions to entice potential tenants. Once you’ve received a few applications, make sure to evaluate their credit score and past references.
Consider Hiring a Property Manager
If you don’t think you’ll have the time it takes to manage your property and liaise with tenants, we recommend you consider hiring a property manager. For example, delrentals offers rapid rent collection, maintenance and repair work, in-house legal assistance, and more.
Ask For Renters Insurance
Another way you could safeguard your financial position is by asking your tenants to purchase a renters insurance policy. This can help avoid future litigation, and policies are typically very affordable for tenants.
Always Have a Written Agreement
This should go without saying, however, you should always have a written agreement in place when it comes to renting out a property. Even if you are renting to a friend or family member, make sure there is a contract in place.
Collect Payments Online
Unless you live within a five-mile radius, visiting your tenants to pick up checks or payments can be extremely tedious for all parties involved. That’s why you should always offer the security and convenience of online payments.
Entice Your Best Tenants to Stay
When you have great tenants, you should try to get them to stay. You don’t know how bad it can be until you get a group of nasty renters on your property. To entice your renters to stay, be a responsible and fair landlord.
At the end of the day, the safety of your tenants is in your hands. You have a responsibility to ensure the residence and service you are supplying is of the highest quality possible. This means staying on top of repair work and facilitating two-way communication.