Starting out as a new landlord can be challenging. The job requires multi-tasking and doing many things such as finding and screening prospective tenants, creating and following rental agreements, and collecting rent online. Following are some important tips for any first-time landlord.
1. Consider the Property to Be a Business
Although managing rental properties may not be your primary job, it can absolutely generate additional income, and therefore it is important to take the job seriously - you must act as a professional with tenants, maintain your finances properly, and perform a full tenant screening to find the right tenants before you select anyone to move in. Keep in mind that you are also required to comply with state, federal, and local laws. It is essential to take the time to perform research and understand state and federal laws before you plunge in.
Related: How To Grow Your Property Management Business: Time Management Skills Every Landlord Should Practice
2. Look for Tenants Online
Most potential tenants search for properties online. The best way to find tenants is through listing your rentals online. You should advertise your property or promote your listings on listing websites. Your listing should detail the details of your rental property such as an address, rent price, number of bathrooms and bedrooms, amenities, and other attractions close by. The more informative your listing is, the more potential tenants it will attract. You should also upload clear photos of the rooms and common spaces. Prospects are likely to be more interested in case they can visualize the property.
3. Remodeling the Space Before Renting
Vacant properties are a landlord’s nightmare. Your rental properties must be attractive, comfortable, and efficient. You should not, however, treat a rental property as if it is your own house. You do not want to invest the same time and money as you would into your own space.
But you can, of course, consider renovations such as placing houseplants in the rooms and using LED grow lights for making them grow.
Related: Top 5 Property Management Business Strategies: How to Scale It Successfully
4. Set a Proper Rental Price
You must research the fair market rental price before setting the price of your rental. Compare the potential income you may gain from renting a property with the expenses and determine if it is profitable.
5. Perform a Credit and Background Check
A credit check is the best way to learn whether an applicant is a financially responsible person or not. When you review the credit reports of prospective clients you should look out for red flags such as late payments, notable debt, prior eviction history, and bankruptcy filings. If a renter has a solid background and financial history, it is a clear indicator that the tenant will pay his or her rent on time. If a renter has no criminal history, they will likely treat your property with respect. It is certainly a good idea to rent your property to people who have strong credit.
Related: The Benefits of Using Rental Property Management Software: Tenant Screening and More
Conclusion
You must consider every aspect of the business when you take on the responsibility of being a landlord. If you are looking to manage a top-quality rental business without sacrificing money, unnecessary amounts of time, and stress, it is important to be prudent and carefully consider each aspect of the business. Taking your time and making smart choices is invaluable in the long run.
