So you finally made the decision to invest in a rental property, and became a landlord in the process. You're in good company, with homebuying on the rise. However, you’ve only just begun. To succeed in the rental property industry, you need to develop your skills and knowledge as a rental property owner.
Feeling some slight trepidation? Don’t worry, that’s a normal emotion. After all, you wouldn’t be feeling nervous if you didn’t care. It’s no secret that rental property is serious business.
Here are some tips you can follow to be an effective first-time landlord:
#1: Treat Your Rental Home like a Business
When dealing with rental payment collection, you need to be firm. If you start being a pushover, your tenants will not take you seriously. If there are policy violations and the leasing agreement is not followed, then you’ll need to execute the steps you outlined.
Rental collection is a major part of keeping your finances fluid. If payments are delayed, you can establish a late charge scheme. Your payment due dates must be respected. Otherwise, your income will be inconsistent. You don’t want to stress yourself over something as basic as receiving rent on time.
#2: Be Clear and Set Your Standards Early On
Although leasing agreements are made to provide clarity between the landlord and the tenant, some renters will still challenge the conditions stipulated. Discuss the consequences before signing the lease. The tenants must understand their duties and commit to fulfilling their end of the bargain.
When renters know you expect them to adhere to the lease agreement, they won’t have wiggle room to renegotiate. Always strive to be clear when it comes to your standards. Being transparent will show each renter that they are accountable for any misconduct.
#3: Have a Landlord Checklist to Avoid Overlooking Important Matters
A checklist makes it easy to remember essential items so you’ll pay close attention to any make or break details. As a responsible landlord, you’ll want to be on top of every aspect of rental property management.
Here are some items for your checklist:
Fire extinguisher in the building in case of emergency
Electrical safety
Inspection of smoke alarms
Plumbing and HVAC systems in order
Staircases and elevator safety
Walls, roofs and floors inspections
Local permits for operation
Property insurance
Tenant/ applicant legal documents
Signed and dated leasing agreement
Tenant’s security deposit
You'll also need to stay up to date with rental trends, including what tenants are looking for and what their reasons for moving are.
#4: Adhere to the Fair Housing Act
Take time to study the Fair Housing Act, either by reading a helpful guide or the act itself. It will save you from potential lawsuits and complaints. The Fair Housing Act discourages discrimination against the protected classes. Avoid selecting tenants based on color, religion, race, familial status, national origin, sex or disability.
You can consult with a lawyer to solidify your understanding, since you’re required to understand these laws. Being compliant will save you from future conflicts and will help eliminate potential stresses. Focus on operating your rental unit legally. This way, you’re always respecting the rights of your tenants and prospects.
#5: Stay Particularly Organized When it Comes to Finances and Record Keeping
It’s important to be organized and be up to date with your finances and records. If you’re scatterbrained, it’ll be nearly impossible to get through the tax season. Worse, you won’t know whether you’re making a profit with your rental property investment. You need to implement effective strategies to earn steady returns with your investment.
Make it a point to check your paperwork and bookkeeping. You must remain aware of how much you’re spending and earning. For example, say you’re spending a lot on printing materials when most of your prospects are online. You could curb costs by concentrating more on digital advertising.
#6: Conduct a Self-Assessment
It’s easy to get excited and feel like you can do everything on your own once you’ve secured a property investment. Do note that managing a rental property takes considerable effort, from maintaining your property and keeping it safety compliant to managing your tenants and implementing proper systems.
Be honest with yourself first. Do you have the spare time to focus on your rental property? Do you live close to the property? Would you rather focus on reaping the profit statements rather than taking an active role in managing your rental space?
Addressing questions like these will help you pinpoint your strengths and weaknesses as a landlord. You can discover where you need to gain more skills and improve.
#7: Hire a Property Manager
You need to be aware if you’re able to navigate the property management landscape on your own. If not, you can always opt to source out a property manager. Property management companies have the extensive experience to handle every kind of situation.
If you need support managing your rental property, don’t hesitate to get in touch with Full Scope Home Services at (314) 282 8757. We know how to simplify and protect you from property management stresses. Visit our website at www.fullscopehomes.com.
