Essential Tips for First Time Landlords
The idea of owning properties can be exciting as you visualize generating passive income over the long term from your real estate investment. However, managing your own rental units is not so simple. Before becoming a landlord, it’s best to check out tips and advice from those with experience.
In this article, we will provide you with some of these essential tips. This will save you from making mistakes that’ll cost you long-term. It will also guide you towards managing your rental business smoothly and in a profitable manner.
Being a landlord can certainly be challenging, but with the right mindset and attitude, you will learn to steer your way to success with minimal effort as time passes.
Here are some of the top tips every new landlord can benefit from.
1. Focus on Rental Income
It’s easy to get intimidated and overwhelmed about rent collection if you’re a first-time landlord. However, this should not make you avoid your main duty of collecting a prompt rental payment. Without your rent, you won’t be able succeed in your investment.
You must put pressure on your tenants to pay their rent on time. Also, you must have clear lease agreement terms concerning rent. Exercise authority and expect adherence. Implement leasing conditions and collect late rental fees. Send appropriate notices and start the eviction process when you find that the tenant is not complying with paying on the due date.
2. Proper Tenant Screening
This is an obvious method that will save you from future stresses. A high-quality tenant should be able to pay rent on time, perform renter responsibilities well and take good care of the property.
It’s important to prepare a set criterion so your tenant screening process is efficient and covers all the essentials. Here are some of the things you can do when you have a prospective tenant:
- Conduct a thorough background check
- Check their credit score, rental history, criminal history and financial standing
- Ensure they have a clean record without massive debt, previous bankruptcy and eviction issues
As a property owner, you must be able to gauge that your potential tenant is a good one who will be respectful and who has solid financial capacity to pay the monthly rent.
3. Be Careful About an Open Pet Policy
Many potential tenants will have pets, but you must consider various factors about an open pet policy. It’s vital that you have a clear outline of what types of pets you allow. Setting parameters on the number of permitted pets, breed and level of discipline you require goes a long way in maintaining the value of your home.
It’s highly probable that pets can cause damages to the property. This means more expenses on your part as a landlord. Pets can leave bad smells and can destruction through scratched doors and floors and chewed furnishings. Worse, they can bite other tenants and cause animosity between neighbors.
It’s best conduct pet screening and asking for an initial pet deposit before allowing an open pet policy. This way, damages will be minimal and your home will retain its attractiveness.
4. Take Advantage of Additional Income Opportunities
As a landlord, it’s best not to narrow your vision of generating income through the house rental exclusively. You can take a look at the needs of your renters and create multiple incomes by responding to those specific needs.
Some of these ideas are providing a drinking water supply, food delivery, nearby Laundromat, a mini mart or pet grooming services. Depending on the renters you have, you can look for extra ways to meet them and create a variety of income sources.
5. Be Familiar with the Fair Housing Law
States adhere to the Fair Housing Law to avoid discrimination when it comes to housing. Being well versed in the details of this law can prevent you from being reported by an applicant. This will save you from paying hefty penalties and also prevent you from wasting your time.
Ask for advice from lawyers who are knowledgeable about the Landlord-Tenant Laws. This way you are confident that you’re always compliant with existing laws and updated on new provisions.
6. Practice Online Rent Collection
Convenience is a competitive edge in business. Most people prefer payment options that will save them time. One way to best meet this need is by offering an online payment channel. Nowadays, renters prefer making secure rental payments online. It’s easier to trace and they can even arrange an automatic transfer to avoid late payment charges.
With this approach, there’s no need for to wait extra days checks to clear, and there’s no risk of losing a physical check before it has been deposited. There are also less administrative duties in terms of receiving and monitoring online payments compared to traditional office payments.
7. Hire a Property Manager
As a new property owner, you’re bound to make mistakes. You might want to hire a professional property management company who can take care of your rental unit effectively. Coupled with their vast experience and expertise in managing a rental home, you’ll learn better by observing a property management team’s tried-and-tested strategies. Marketing, tenant screening, rent collection, property maintenance and repair and providing detailed financial reporting are some of the excellent services they provide.
Hiring a professional property manager also increases your peace of mind knowing that you adhere to the state laws of providing safe and habitable spaces for your tenants. Your property vacancies will be taken care of. You are also assured of receiving a consistent income every month. Leaving your business in skilled and trustworthy hands ensures success in your rental business foray.
If you need an attentive property management team who delivers topnotch customer services and efficient strategies combined with powerful technology, contact BlueHome Property Management. Call us at (407) 545-6188. We will professionally take care of your rental property investments.