Buying a rental property is easy in theory. However, the objective of anyone who invests in rental property is to make a profit. Whether you are using your personal money or the bank’s money to buy a rental property, you need to make money off the property. And to achieve this, you must be a good property manager or landlord.
A landlord is an individual who owns a property, such as a building or land. A landlord may decide to stay in their rental property or lease it out to a tenant. However, whether you are staying in the rental property or not, your responsibilities as a landlord remain the same.
Are you wondering what it takes to be a good landlord? Being a good landlord does not come easy – there are several important things you must do to be successful. But the good news is that the efforts usually pay off in the end.
This article provides top proven tips to help you become a successful landlord, both in the long and short terms.
Apply these practical tips to assist in being a good landlord:
As the landlord overseeing your rental property, you must treat the property portfolio as a business. You need to have systems in place and a solution to cover all possibilities by taking a systematic and organised approach, for example if you are not available a tenant needs to have alternative contact details to hand. Also, if a tenant does not pay one month how will you cover any bills. You should be ready to learn your responsibilities and fulfil them appropriately. From looking for suitable tenants, signing lease contracts, receiving rents, and maintaining the property, a lot is expected of a responsible landlord.
This is perhaps the most important role of a rental property landlord. Your tenants are the biggest stakeholders in your business, so you must give it all it takes to find the best of them.
You may list your vacancy in newspaper ads or simply put up a sign in front of your apartment. There are tons of articles and resources to help you set up a comprehensive scouting process to choose the most suitable tenants for your property from the bunch.
When choosing your tenants, ensure they have the financial capacity to meet up with the monthly rent without stretching out their income.
Most importantly undertake a screening process of the potential tenants, obtain references and undertake interviews.
Your roles as a landlord include having a proper understanding of what your tenant expects from your property. This helps you to meet these needs the best way possible, creating a cordial relationship between you and them.
Are your tenants working from home? Do they have pets? Do they have young kids? Having the right answers to these questions ensure that you find the best ways to improve your property to suit the needs of your tenants.
Rental property owners are expected to comply with all the necessary regulations put in place by the relevant authorities. As a landlord, you must stay updated on these laws and ensure strict adherence, even when they change.
Such regulations could range from habitability standards, safety, accessibility, and condition of the rental property. You may face government sanctions if you fail to comply with these regulations, which will affect your business’s smooth running.
Managing your rental property effectively is one of your responsibilities as the landlord, except where the lease agreement states otherwise. If your lease agreement puts you in charge of managing the property, you must oversee the maintenance, upgrades, and repairs of the property whenever the need comes up.
For best results, create a robust maintenance program that will keep the property in the best shape for your tenants, including providing standard amenities, ensuring safety, consistent electricity supply, and fixing or repairing fixtures and fittings.
Like any other business setup, effective communication is key to having a successful landlord-tenant relationship. As the landlord, you are expected to ensure seamless and constant communication between you and your tenants.
For instance, your tenants should not have a problem reporting a new development about the property to you or seek answers to any questions they may have. Likewise, you must be able to duly inform your tenants of new developments or changes on the property.
You will be required to keep a lot of records as a landlord. If you are not a good record keeper, now may be the time to learn how to. You need to keep records of how the apartment looks before the tenant moves in and compare the situation when the tenant is moving out.
Asides from this, you are expected to keep other important records like payments, due dates, costs of renovations and upgrades, fines, penalties, and more.
A good way to be considered as a good landlord would be to go that extra mile to make your tenant feel welcome. Here is a few ideas that could help you go that extra mile:
Owning and managing rental real estate can be a very lucrative business. However, your success depends on how you run your business. The tips provided in the article, when applied, will help you towards being a good landlord.
Alternatively, you can hire a professional property manager to oversee your rental property. This saves you the stress and time that goes into performing your role as a landlord while ensuring you get maximum returns on your investment.
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