Are you about to become a landlord? Congratulations! You join over 44.1 million households who are renters.
Renting can be rewarding and profitable. Or it can be a disaster. So how do you get it right?
The first step is to recognize being a landlord requires commitment and preparation. The more knowledge you acquire, the better landlord you will be.
There will inevitably be some challenges along the way, as we provide first-time landlords with tips to know before renting their house.
Keep reading this post to find them out!
1. Learn the Market
You need to learn about the rental market in your country and your area. What is the price of similar rental property? And what do they require from tenants?
Also, check out competitors. You want your rental property to provide the same amenities and services, or more. You also want to set the price right and familiarise yourself with the best way to find tenants.
2. Know the Laws
Familiarise yourself with laws and regulations. It could save you from unintentional violations, expensive penalties, or lawsuits. In the US, read up on country and state laws because they can differ. Seek advice from a lawyer if you need it.
The first law to know is the Fair Housing Act, which protects tenants from discrimination. Other laws include the Security Deposit Law and the Covenant of Quiet Enjoyment.
3. Screen Potential Tenants
One of the critical tips for first-time landlords is tenant screening. It is common practice. It typically includes screening for criminal background checks, credit scores, and employment history.
Tenant screening helps determine if tenants can and will fulfill your rental agreement. Evicting tenants can be time-consuming and costly. So have patience and carefully select them; it will protect you and your rental property!
4. Maintain Your Rental Property
State laws often require a tidy, well-maintained property. Make the home safe, habitable, and always stick to building codes. Also, a professional appearance stands out from competitors.
Make sure you have the necessary items like carbon monoxide and fire alarms.
Consider hiring a professional cleaner to maintain the property. If you have a garden, hire a gardener to keep it presentable. Preventing wear and tear and the need for deep cleaning saves money in the long run.
5. Treat It as a Business
From day one, treat renting as a business. Have agreements drawn up, plans for collecting rent, and purchase necessary insurance. Record all your income and expenses to stay on top of your finances.
Keep a professional appearance with tenants, too, and consistently enforce the rules. It will help gain you a good reputation as a landlord. Consider hiring a property manager for any legal advice or queries.
Use These Tips for First-Time Landlords
Follow these tips for first-time landlords to prepare you for the journey ahead. It is natural to make mistakes, but you can save some stress with a bit of preparation. Good luck!