Adding a rental property and becoming a landlord is a super smart move for your investment portfolio. Not only does it provide you with a consistent monthly cash flow, but it is also great for wealth building.
But hang on a second. Buying and renting a property is a little more detailed than that. While renting a property, there are a couple of things that you should know as a landlord that can help you navigate the arena of real estate and deal with your tenants.
If you are a landlord planning to rent your property, this article is for you. Read on to find out the four things landlords should know.
Let's begin!
Let's start with the four things every landlord must know while renting a property.
One of the most vital steps before becoming an independent landlord is to understand the landlord-tenant laws in your area. This can help you familiarize yourself with your basic rights as well as the tenant’s and avoid unnecessary paperwork and litigation. Make sure to review the landlord and tenant laws in your local area as they differ from region to region.
To set the right rent for your property, take some time to research the fair market rent price in your specific area while also considering how it will affect your finances. Compare your rental income with your rental expenses. It is important to ensure you can keep up with the rental expenses while also making a profit for yourself.
Once you set the rent and have a well-written lease agreement, you need to develop a good marketing strategy to make your property visible to prospective tenants. Hiring a property manager for this task is probably a good idea.
Advertise your property on websites like Craigslist, Zillow, and Trulia by posting high-quality images of the property's interior and exterior. Create a rental ad highlighting your property's features and amenities.
Once you have found a suitable tenant, it is essential to do a background and credit check on them before signing the lease. There are only a few things worse than getting stuck with an unreliable and difficult tenant.
Ensure your tenant is trustworthy to avoid future problems related to damaged property and late payments. Request for references from the previous landlord and ask the tenant to submit a rental application that ensures they are good for the rent money every month.
Once you are satisfied that your tenant is trustworthy and will be able to make monthly payments regularly for the duration of the lease agreement, you are ready to sign the lease agreement with your new tenant. Setting a date and time to review the lease agreement together is always a good idea. This way, you (as the landlord) can answer any questions they (as the tenant) may have.
It's best practice to be transparent with any existing wear and tear in the property's fixtures. It is also a good idea to document the property's condition before handing it over to the tenant to help you during the move-out inspection.
If you are renting out a property, one of the things you will be doing is collecting the rent every month along with maintaining the property for your tenant. As long as your property has a tenant occupying it, these two duties prevail.
This involves collecting the rent on time on a monthly basis. Because this is a task you must perform regularly, it is important to set a working system in place for collecting and issuing payments.
The property has to be in good condition, neat, and tidy before the tenants move in. As a landlord, it is your duty to perform routine checks on the property and repair any damages caused by regular wear and tear, especially once they have moved in.
Most landlords hand over these responsibilities to a
property management & maintenance company. You can decide if you want to do it independently or hire someone for the task.
The things listed above that you need to know as a landlord are just the tip of the iceberg. By now, you probably have a good understanding that renting out a property and managing it is a challenging task. You need to be available for your tenants all the time in case of any emergencies while also looking after the management and maintenance of the property.
It only seems prudent to hire a trusted property manager who can take over all the responsibilities and ensure that your monthly cash flow remains flowing.
A property manager can oversee the management and maintenance for a reasonable fee. They are actively involved in the operation and perform tasks such as:
A reliable property management company can handle all these responsibilities and more. Depending on your availability, the fee you pay a property manager can be worth the time you save.
From knowing the landlord-tenant laws like the back of your hand to screening tenants while taking them on, renting out a property is a major undertaking and involves a lot of hard work if you are an independent landlord. It is essential to know how your property can produce a profitable flow from the get-go. Hiring a property manager is one of the smartest things that you can do to ensure your success as a landlord.
At
Guardian Property
Management & Maintenance, you can find the experts you need to rent out, manage, and maintain your property. Our job is to take away all the hassles involved in owning a property.
Contact
Guardian Property Management & Maintenance today for all your property management needs by calling 651-287-2011 or emailing us at info@guardianprop.com.
