4 helpful tips every new rental owner needs to follow
Over 10 million Americans earn their income from rental properties and this number is expected to rise as more people are buying homes.
Becoming a landlord can be overwhelming, from figuring out how to find reliable tenants to figuring out which insurance you need. But there are basic rules to follow, which will streamline the process. Perhaps you’re currently struggling in this area and you’re looking for guidance.
Sounds like you? Don’t worry, you’ve come to the right place. Here are four helpful tips for rental property owners.
1. Find a Rental Property That Attracts Tenants
Before becoming a rental property owner, it’s important to find the perfect spot. Focus on up-and-coming neighborhoods and make sure you can charge at least 1% of the final price so you get a decent income. You should also find somewhere with a unique selling point, such as a parking spot and access to public transportation, especially if you’re in a city.
2. Create a Vigorous Vetting System
One of the top tips for landlords is thoroughly screening tenants before signing a contract.
Make sure you have the prospect’s contact details, employment history, and proof of income so you know they can afford your rate. You should also ask for references and a credit check to give you peace of mind.
Note, it’s not compulsory to accept the first tenant to reply, especially if you’re not 100% certain they’re the right fit. Take the time to get several so you have a larger pool to compare them against.
3. Get Everything in Writing
As a first-time landlord, you may rush through the process without getting written confirmation.
But one of the most important tips for first-time rental property owners is having a completed application as it is legally binding. And before agreeing, ask an attorney to review your forms so there aren’t any nasty surprises later on.
4. Perform Regular Inspections
If you’re a new owner of rental property, then you should commit to regular inspections. As a general rule, landlords should check on their property every six months to ensure everything is running smoothly. But give tenants a month’s notice so they know you’re coming.
Aside from giving you peace of mind, inspections let you ask tenants if they’re happy with the property and if there are any repairs. But stay to your word so you keep a good landlord-tenant relationship. So, for example, if your tenant suggests replacing the carpet then do so promptly as it shows you value them.
And you mustn’t forget to get rental insurance as it protects you should anything go awry.
Enjoy Our Tips for Rental Property Owners
Hopefully, after reading our tips for rental property owners, you’re feeling confident.
Start by finding a rental property that will attract tenants, establish a rigorous screening system, and get everything in writing as it protects you. You should also perform regular inspections and follow-through with tenant complaints so you keep a good working relationship. Good luck!
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