Owning more than one real estate is a blessing – using it to make more money is the logical option, that’s why many landlords start renting their properties. But, it’s not as easy as many believe it to be – a lot goes into it than just getting monthly payments from people living on your property. Being responsible and respectful towards the tenants is a must, but there are some behind the scenes things you need to keep in mind too! So in order to be good at it, here are the 4 things first-time landlords should know about managing a rental property!
Learn the laws
There are certain laws and regulations every future landlord should get familiar with. Starting from the obvious, there are certain landlord-tenant laws that should be respected as well and all the legal responsibilities on both ends. There are times when things will go smoothly, but you should always be prepared for the worst – no matter what kind of situation might arise in your landlord career, you should know where you stand legally.
Things can get pretty serious, even leading to lawsuits – a tenant can sue the landlord and vice versa, so it’s important to know how to avoid this. Keeping the property safe and providing everything on your end is a must in order to establish a healthy relationship with the tenant. Make sure to legally guard yourself and only act in a respectful manner, even if things aren’t right – keeping civilized communication is key.
Take care of the property
As a landlord, there are many responsibilities, not just going to collect the monthly rent. This is your property, to begin with, so it’s in your favor too to keep it in a good condition. But if you’re not in the same city or state as your rented property, there are many property management services that can do it for you. From picking up the rent, paying the bills, helping with taxes to repairing the property, and managing it completely.
So basically, if the tenant has a problem with something on the property, it’s the landlord’s job to sort it out and get it fixed as soon as possible. This will ensure safety and satisfaction for both sides! On the flip side, if you don’t have the time and energy to do all of that yourself, hiring an experienced and trustworthy service is a must in order to properly take care of your property!
Choose tenants wisely
If you want to make your renting journey a bit easier, it’s a good idea to choose the right tenants from the start. Keep in mind that these people will be living on your property, so it’s a good idea to be secure that way. Start by having a list of things you are looking for an absolute musts that need to be fulfilled by the potential tenants. Don’t focus solely on them as people, but what they can offer – like their credit if their credit score is in good condition, it’s more likely that they are financially responsible.
Things like this can tell you a lot about them, and even prepare you for what’s to come – people with flimsy or sketchy jobs are also to be avoided – proving that they are financially stable and have a secure income is a must!
Being open and upfront when presenting your property is essential, especially if you want to avoid getting into legal trouble with your future tenants. Start with having a written down plan and monthly rent you and your tenant agreed on. Never hide or lie about the possible issues of the property and openly disclose everything with your tenant – also you shouldn’t come up with random rules and restrictions after signing a contract with the tenant, it’s not fair nor legal to do so.
In order to be a good landlord, being honest with the tenants is a must in order to establish a good relationship from the start – if you have nothing to hide, and nothing to surprise the tenants with they will treat your property like home.
At the end of the day, so many elements go into managing the rental property, but as long as you keep everything safe and secured, and establish a good relationship with the tenants, there shouldn’t be a problem. That doesn’t mean you should take everything so lightly, there are various legal precautions you need to take in order for things to go smoothly! It might seem like a lot of things, especially for a first-time landlord, but after a couple of months, you’ll get used to it!