Renting property is a big decision that comes with a lot of responsibility. If you’re thinking about renting property, there are a few things you should keep in mind:
1. Make Sure You’re Prepared to be a Landlord
This includes being available to your tenants 24/7, having the financial resources to make repairs and improvements, and understanding the legal aspects of being a landlord.
If you’re not prepared or don’t have knowledge of the full range of what being a landlord entails, you could end up costing yourself a lot of money and headaches down the road making it a short endeavor.
2. Choose the Right Property
Things to consider when choosing the right property are the following:
- The location should be safe and convenient for your tenants.
- The property should be in good condition and up to code.
- The price point should be one that you can afford without breaking the bank.
Keeping these in mind will help you narrow down your search and choose a property that is right for you.
3. Screen Your Tenants Thoroughly
It’s important to find tenants who will pay their rent on time, take good care of your property, and follow the rules and regulations you set forth. A checklist to keep in mind when screening tenants is to:
- Check their credit score
- Ask for references.
- Conduct a background check.
- Interview them in person
Numbers are important but so is your gut. Trusting your instincts can go a long way in choosing the right tenant for your property.
4. Have a Solid Lease Agreement
Your lease agreement should spell out all the rules and regulations tenants must follow, as well as your rights and responsibilities as a landlord. When a lease agreement is not solid, it can be the root of disputes because it was either not thorough enough, or not explained well.
Be sure to go over your lease agreement with your tenants so there are no misunderstandings down the road.
5. Be Ready for the Unexpected
No matter how well you prepare, there will always be unforeseen circumstances that arise when you’re a landlord. From unruly tenants to natural disasters, being ready for the unexpected is key to being a successful landlord.
Some things you can do to be prepared for the unexpected are:
- Keep up with maintenance and repairs so issues don’t become bigger problems.
- Have an emergency fund set aside for repairs or other unexpected expenses.
- Be familiar with the eviction process in your state so you know what to do if a tenant doesn’t pay rent or damages your property.
Preparation is key when it comes to being a landlord.
Renting property is a big decision with a lot of responsibility. Be sure to do your research, know what you’re getting into, and be prepared for the unexpected. And if you’re unable to follow these duties out or feel overwhelmed, consider hiring a property manager. With a little preparation, you can be a successful landlord.