How To Be A Successful Landlord
For the uninitiated, being a landlord isn’t exactly an easy thing to do.
You can get stuck with a problematic tenant or end up with a property that always seems to need repairs. But, operating a rental property doesn’t have to be a perpetual headache if you are well prepared and set yourself up for success.
This article will give you 9 tips to make your life as a landlord and real estate investor much easier.
9 Tips To Be A Better Landlord
Use a professional property management service.
Hiring a professional property manager will take a lot of the pressure off of you as the owner. They can find new tenants, arrange maintenance, and collect rent on your behalf.
They’ll also deal with any problems that tenants may have, so you don’t have to get involved. This keeps space between you and the people who live in your rental property, which is a great way to reduce or avoid conflict.
The only drawback is that hiring pros costs. It will run you about 10% of the gross rent, so you’re only going to want to use professionals once you’ve scaled up past a couple of properties.
Invest in software to help you.
If you’re going to manage the property yourself, there are different software applications that can help you handle tasks like tracking repair receipts, storing leases, managing property listings, collecting rent and screening potential tenants.
Pay a photographer to take high-quality pictures of your property before advertising it.
Whether you buy a resale townhouse or preconstruction, good images will attract more potential tenants and help them to decide if the property is somewhere that they’d like to live. “Preconstruction” is just a fancy term for a house that hasn’t been built yet.
Make sure the pictures are hi-res and properly lit. Take close-ups of any interesting details, like signature light fixtures, unique hardware, or expensive finishes. If the property has beautiful views, include those in the photographs too.
Invest in renovations that will attract tenants who are willing to pay higher rent.
It’s tempting to maintain your property as cheaply as you can, but that’s not always the best way to do things. If your property feels too cheap inside you won’t be able to charge as much each month and you may find that it takes longer to fill a vacancy.
Instead of being as cheap as humanly possible, invest in renovations or upgrades that will be popular with tenants.
This could mean replacing the 80’s disco vibe wallpaper from a bedroom or swapping out a musty carper for some laminate flooring. Invest in decent counters and cupboards and you’ll spend less on repairs down the line.
Consider allowing pets.
Most rental properties are pet-free, so a tenant with a pet will be very grateful to find your property.
Since pet-friendly rental units are the minority, you will have less competition. Tenants with pets will be more likely to sign on and stay with you for a longer period of time.
In reality, small, caged pets are unlikely to cause damage, and even most cats and dogs won’t harm your property. Cats shred leather couches and dogs eat shoes. That’s not really your problem unless you’re running a fully furnished Air BnB.
In any case, if you’re concerned about damage, request a pet deposit to cover any damage. Problem solved.
If your property has outside space, consider some minor landscaping.
You don’t need to go crazy, but at least make sure things are tidy. An overgrown front lawn might put off a prospective tenant. Clean up the place!
Screen your tenants thoroughly.
It’s best practice to run a credit check on your tenants because you want to make sure they have a history of paying what they owe.
You can also ask for a reference from their previous landlord. You will be grateful you did your due diligence when you finally find that amazing tenant who is exactly as advertised.
Walk-through the property with your new tenant.
This is great for both you and the tenant. It’s an opportunity for you to show them where important items are like emergency water shut-off valves and the fuse box.
At the same time, you can both agree on the condition of the property. Take pictures of any preexisting damage so that there is no debate about the shape things were in before the tenant moved in.
Keep a good relationship with your tenants.
Keeping a good tenant long-term is the best way to make a profit in your property, so stay on good terms with anyone you’d like to keep living in your property. Respond in a timely manner to any concerns or repair requests. Then, show them that you actually care by dealing with repairs in a timely manner.
Final Thoughts On Getting Started In Real Estate
No matter what you do, you will continue to learn as you go.
Experience will always be the best teacher, so don’t wait until you are 100% ready to begin investing in real estate. Find a good mentor, watch what they do, ask questions, and then start shopping for your first deal.
You will make mistakes. But mistakes are the tuition fee to financial freedom. You will learn from those mistakes and they will help you learn how to be a better property owner..