Being a landlord can be challenging, especially when you’re just starting out. From finding and screening tenants, creating and following a rental agreement, and collecting rent on time, the journey of a landlord is quite eventful. And there are many different aspects that one must keep into consideration. So in today’s blog, we will discuss some important tips for first time landlords and help guide you through all the important rental tasks that can’t be missed.
SET THE RIGHT RENT PRICE
To set the right rent price, we recommend researching your market to learn what the fair market rent price is in your area. Pricing your property at the rent price that makes sense in your location can mean the difference between vacancies and attracting good tenants so you can rent your property quickly. You can also use online applications to help guide your rental rates. As you set your rent price, you should keep in mind how it affects your finances as well. After all, rent payments are your main source of income on your rental property. To compare your rental income to your rental expenses, you should list your fixed and estimated expenses. Fixed expenses are your mortgage payment, property taxes, insurance fee etc. Your variable expenses are utilities, repairs, and property improvements. By comparing income to expenses, it’s easier to see how rent price affects your monthly earnings.
HAVE A WRITTEN RENTAL AGREEMENT
Having a written rental agreement is the best way to communicate your expectations and protect yourself in legal situations. Oral agreements are less effective than a written document signed by both parties. Without a written document, it may be difficult to prove what was agreed upon prior to tenant move-in. Rental agreements are also very effective when it comes to stating the tenant and landlord benefits. The agreement should state whether the landlord is providing any utilities, such as electric, gas, water, and cable. Alternatively, mention the tenant’s responsibility for utilities. Be clear about what’s included in the rent and what isn’t. If you’re providing appliances and furniture, list them by name, such as stove, refrigerator, bed, couch etc.
GET A BACKGROUND CHECK
One of the most important tips for first time landlords is to get a background check on the applicant. When reviewing your prospective tenant’s background reports, look out for some red flags that can cause issues in the future. Notable debt, undue payments, bankruptcy filing, and prior eviction history etc. are some great points to start with. A solid finance and background history is a predictor that a tenant will pay rent on time, is free of any criminal history, and will treat the property with care.
HIRE AN AGENT
Hiring a real estate agent can be a worthwhile investment if you’re looking to save on the time and hassle involved in owning a rental property, such as marketing your property, finding the right tenant, and dealing with tenant issues. A good property agent can also help manage multiple rental properties if you find yourself overwhelmed with landlord responsibilities.
DON’T DISCARD SINGLE TENANTS
Right to a home is one of the most significant basic human rights. Many people leave their hometowns and move to different cities to study, for work, for business or for a better lifestyle or many just fall victim to circumstances or choose to live on their own. And given that it’s not easy to buy a home, most people tend to take a flat on rent. However, not many landlords are not willing to rent out their property to single tenants. So not discarding single tenants will help you leverage on an untapped market.
Renting out your apartment for the first time would most definitely require you to take some extra precaution. However, the following tips for first time landlords would make your life much easier. So are there anymore tips that first time landlords should keep in mind? Share them in the comments section below.
