Becoming a landlord allows you to have a steady stream of income and it does take time to be successful. So, if you’re not investing and doing the work, you’re going to have issues. Another big thing is being a good landlord, which means maintaining and repairing the place itself, finding tenants you can trust, and handling any issues or complaints that come up or hiring someone else.
Investing in real estate does have the payoff, and about 36% of Americans are headed by renters, and the number has increased. The rental rates have increased, so it’s a worthwhile investment, but you need to make sure you do it right.
The first thing you need to do is find tenants that are trustworthy, since these are people living and maintaining the property, ensuring that the renting is to your satisfaction for the long term. You need to look for more than just a full application and someone who is friendly, and you should do a background check, credit report, and the rental history of the place. Any tenant that is unwilling to complete this is a red flag. You should make sure to follow the fair credit reporting act and make sure to adhere to written tenant screening criteria policy to ensure that the process is fair and straight, and to ensure that you don’t forget any crucial steps within this process.
Next, understand the rental and housing laws, and stay informed about this. You should know the fair housing act for anti-discrimination of renters, and the implications at all levels. Citing and housing laws are likely to set the standard. You can hire a property manager to help you understand, or your local landlord association.
Next schedule property inspections. Do this from time to time to keep issues from becoming a bigger problem, even before the tenant reports this. Some of the best tenants that are there have never been homeowners, but you should schedule both move-in and move-out inspections during a turnover, and make note of damages that should be addressed. One of the reasons people are worried to go into land lording is expenses, but doing these frequently helps.
As always, make sure to follow through on late fees. If the tenant slips, you should follow through and understand that the policies are strict, and help ensure they won’t make the mistake in the future.
Finally, protect yourself. You should make sure that you verify the insurance to cover the landlord situations before you move, and you have the appropriate amount of insurance, liability insurance, or whatever you need.
Having these five tips in place will make you the best landlord that you can be, and you can protect yourself from negligence and damage that might happen on your property. By working on this, you can encourage benefits that will protect the possessions, but also any issues that come from this, and you’ll be able to keep on top of whatever’s needed.