On paper, being a landlord sounds like a super easy and lucrative job: you own property (or properties), collect rental every month, and sit back to enjoy the profits. However, as many landlords will be more than inclined to inform you that not everything is smooth sailing when it comes to managing rental properties, as you may be dealing with unpromising financial circumstances and tenants from hell (not literally).
It’s starting to sound a little more intimidating, right? Don’t worry, here are our top 5 tips to guide you towards becoming a successful landlord!
#5 – Address rental problems ASAP
This is the most common issue faced by most landlords – complaints or problems brought up by tenants about the property. Some issues are easily fixed, like minor fixture repairs or plumbing problems, but other problems may be more difficult and costly to solve, such as broken furniture or electrical appliances, neighbor disagreements, and crime. Make sure you are able to handle these problems personally, or able to find a reliable person to help you manage them.
#4 – Don’t be too lenient
Even though everybody wants to be the good guy, being too lenient will only bring you problems later, especially if you are unfortunate enough to encounter troublesome or irresponsible tenants. Be strict when it comes to timely payment of rental fees and measures for taking care of the property.
#3 – Screen tenants thoroughly (and don’t be too lenient!)
Doing a thorough check on your potential tenants will not only ensure that your property is well taken care of, it will also save you from a lot of unnecessary stress in the long run, and increase your chance of success. Some items to check on include income source, employment history, and history of late payments, if any. Have a list of criteria that potential tenants must be able to meet, and draw up a contract that clearly states the terms of rental in black and white.
#2 – Have a good understanding of your finances and legal rights
This should be a given, but more often than not, people underestimate the expenses required to own and maintain rental property, such as repairs, taxes, bills, etc. In the case of legal disputes or problems concerning bad tenants, you’ll also need basic knowledge of your legal rights as a landlord, and also the terms of your rental contract.
#1 – Treat Your Rental as a Business Plan
This is probably the most important thing you should take note of in this list. Most people, especially individuals who are renting out a single apartment unit or house, tend to disregard owning rental properties as a form of business. Remember: if you own rental properties, you own a business. Therefore, you should treat it as such and create a business plan. Managing your rental properties like a business, with a separate phone, email address, and working hours, you will be able to handle your finances and responsibilities in a more professional and organized way.
Are you renting property instead? Find out these top 5 tips to be a good tenant – who knows, your landlord might throw in some sweet extras if you’re nice! 😉
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