There is this sense of fulfillment you get when you become a new landlord as you are assured of getting steady passive income. While becoming a landlord is awesome, there is more to it, and as a new landlord don’t get carried away by the joy of owning a property. You need to set yourself up for success, and these tips will help you a lot as you journey into the world of property owners.
- Have a complete screening of tenants
You surely want your property to be filled up as quickly as possible, but this doesn’t mean that you shouldn’t conduct proper screening of tenants. This is very important if you want your investment to stand the test of time and yield positive results for long. Looks can be deceptive and some tenant can pretend just to be accepted. Conduct full screening and background check, and if the intending tenant doesn’t want to allow you carry a full background check then you should be wary of such applicant and move on. Your tenant screening criteria should be in written form so that you don’t discriminate against anyone and screen every applicant equally, adhering to the Federal Fair Housing Act. When you screen properly, you save yourself from the stress and expenses of evicting troublesome tenants.
- Know the rental laws
Though most aspect of the law are similar all over the country, there are some states that have specific laws that you wouldn’t find in other places. Knowing the rental laws in your area is important. Some laws may seem difficult for you to understand therefore it is important that you hire a property manager.
- Carryout regular inspection
Yes, your property will bring passive income regularly for you, but that doesn’t mean you should just abandon it after filling it up with tenants. Regular inspection is important, as this will help you know the status of your property and also carryout proper maintenance. You don’t have to wait for tenants to report an issue, regular inspection can help you detect issues and fix them promptly.
- Charge late fees steadfastly
Some tenants will exploit the extension of rent, and they will be trouble to you. As a new landlord, always remind your tenants of the rent in advance and strictly follow what is in the lease agreement. If you allow them to go against the lease and pay rent late, you will not get returns for your investment in the long run. If for any reason you want to allow late payment, make sure you verify the claims of the tenant.
- Insure your property appropriately
Home owners’ insurance is mostly different from a tenants’ insurance, so make sure you get the proper insurance, one that covers situations you are in as a landlord. You should also strongly encourage your tenants to acquire renters’ insurance, as this can help cover lots of expenses for your tenants and even you the landlord.
As a new landlord, you should be equipped with knowledge to help protect your tenants and also your investment. The tips listed above should get you started already.