Becoming a landlord can be both exciting and rewarding. However, sometimes it is tricky to keep track of all of the ins and outs of things, especially if it is your first time with these responsibilities.
As a landlord you are going to want to attract renters, as well as maintain them. But, it is also important to keep in mind that renting is a temporary living solution for many. So, you are going to want to keep tenants happy for the short time that they may be there.
Here are a few things to consider to help maximize your success as a landlord as well as make things easier for your tenants.
There are quite a few components that go into setting your price range. It is a hard balance, too. You have to charge enough to pay for and maintain your property, but not too much so that you do not turn renters away. You also have to consider all of the amenities that you do or do not offer. Additionally, it is important to keep an eye on the prices of rent in your surrounding area to keep up with the competition.
There are a few different types of insurance to think about and promote as a landlord. First, there is your basic landlord insurance. It is very similar to what is covered on a standard homeowners policy, but since you are renting out this property for a significant period of time you must obtain a separate policy for it. It covers your choice of liability, any damages to your property, and loss of income due to long periods of vacancy.
You should also highly recommend, if not require your tenants to obtain their own renters insurance. Renters insurance protects their personal belongings in the event of a fire or flood, among other thing. Your landlord policy does not extend to their belongings, so the sooner they are aware of this the more satisfied they will be in the long run. Renters insurance is crucial.
Be sure to be well-versed on all of the laws in your area regarding renting out property. This will help you build up a reputable background and attract more clients. It is also important to document everything properly to avoid issues come tax time and avoid run-ins with unlawful activity.
Examine Prospective Renters
Conduct interviews of potential clients. It is vital to get enough background on the people who may end up living on your property. Make sure they will not cause trouble or damage to your property and that they can actually afford to make payments come collection time. Also, be sure to set both clear and fair rules for your clients.
Be sure to explicitly state and enforce rules regarding collection. Make sure your tenants understand how important it is to pay on time since you have a mortgage to keep up with, yourself. Experts suggest creating an automatic online payment method to make it more convenient for you and your clients.
Be prepared to manage long periods of vacancy, it is a trade off of being a landlord. One way to help minimize losses is by obtaining a landlord insurance policy that handles loss of income, as mentioned earlier.
Do not be afraid to ask for help if you are overwhelmed. As a landlord, this means hiring a property manager. A good time to do this is if your property is pretty full and/or you are struggling to fulfill all of your responsibilities. Just be prepared to take away a little bit of your expected profit.
Overall, being a landlord can be a great way to earn money and provide a temporary living space to many people. Just remember to keep up with your responsibilities and be transparent to prospective clients for the best relationship with your tenants.