You’ve got a property to rent! Now you need to master how to be a landlord.
It’s a rewarding job, but it’s not without some pitfalls. To get you going, let’s walk through what it means to be a successful landlord.
One of the most important things to do from the start is to think of your rental property as a business. It’s easy to get into trouble or find yourself with an unprofitable property if your approach is too relaxed.
From knowing landlord-tenant laws to proper documentation and communication, get started on the right foot.
Use these resources as a quick overview for some of the common pitfalls you’ll want to avoid as a landlord. You might also find it helpful to see how a property management company handles some of the key areas of being a landlord.
The Benefits of Being a Landlord
Despite the workload, many landlords decide to get into the rental property business because of the benefits.
Are you relocating? If so, you might consider selling your home or renting it out. Can you make a profit on the property by putting it on the market to sell?
Some landlords get into the business because earning long-term passive income from their property is a better financial decision than selling. Many landlords also appreciate the benefit of the tax deductions that come with owning and maintaining a rental property.
How do you know if the benefits of being a landlord are right for you? You’ll have to weigh the pros and cons of your property and your financial goals.
These links provide more helpful insight into buying versus selling your property and property management tax deductions.
Tenants Hold The Keys
Literally and figuratively, tenants hold the keys to your properties—and to the success of your rental property business.
As a landlord, you have to be careful which tenants you choose for your properties. Bad tenants, or professional tenants, cost you money.
Finding and screening the best tenants for your property helps you run a profitable business. It all starts with your property listing. The quality of your property description and photos helps attract quality tenants.
Also, be sure you know your target rental audience. Make sure your property attracts the tenants you want. Once you find those perfect tenants, retaining them helps you make more money.
Find ways to minimize tenant turnover—or “churn.” Being an excellent landlord makes tenants want to stay in your property with longer lease terms.
Learning how to find the right tenants and how to deal with bad tenants is one of the hardest parts of being a landlord. Check out these resources for more insight into managing your tenant relationships.
Maintain Your Business With Good Maintenance
Being a landlord would be much easier if you could get a house ready to rent, find good tenants, and then relax and collect the rent each month.
Unfortunately, that’s rarely how life goes as a landlord.
In your efforts to be a great landlord and keep quality tenants in your properties, you’ll need to keep a regular property maintenance schedule. This includes seasonal maintenance to keep your properties ready for changing temperatures and weather.
You’ll also perform Move-In and Move-Out inspections and Make-Ready maintenance during tenant changeover.
If the idea of grabbing a ladder and a hammer and fixing things around your properties is a deal breaker for you as a landlord, you can relax. You don’t have to be your own handyman.
Working with a property management company takes care of the maintenance requirements for your properties—while you wait for the rent to arrive each month.
Keeping up with the seasonal maintenance checklists for your properties is a critical part of being a landlord. You also need to know what maintenance items require legal accommodations for a tenant’s reasonable request. Click these links for more information.
Being a Landlord is Worth it
At this point, you might feel a little overwhelmed at some of the big things that go into being a fantastic landlord. It’s okay to feel that way!
When you take steps to do the job well, you’ll find the financial rewards of being a landlord are worth it.
The good news about running a successful rental property business is that you don’t have to do it alone. Property management companies exist to help landlords manage their rental property portfolios.
Of course, there are pros and cons to hiring a property management business. You’ll have to decide if it’s right for you.
If you decide to look for a property management company, do your research to find the best one. Check referrals, conduct interviews, and ask about tenant screening processes.
Gather enough information about any potential property management company so that you feel comfortable allowing them to maintain your properties and find the right tenants for your homes.
Deciding to hire a property management company is a big decision. Use these resources to help you determine if it’s right for you, and how to find the best property management company for your needs.