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Congratulations! You’ve got your first rental property. And now it’s time to find your first tenants, and enter into the world of being a landlord. You will want to read these tips for first-time landlords before going much further:
- Think business. Being a landlord is not the time to allow emotions to influence you. If you’ve invested yourself into saving the world, and putting a roof over people’s heads above making money, then skip this article and carry on. But if you’re in it to turn a profit, this is your new business, and should be treated as such.
- Have a plan. Be sure you’ve done all the math and know what fair market rates are for rent in your area. Does you lease reflect the correct rate for rent, utilities, and maintenance? Have this in order before accepting applications.
- Screen tenants, have them fill out applications, and do solid background checks. Many renters don’t have perfect credit scores, but if you combine the potential tenants’ total profile, you will be able to spot the ones you can reply on to pay on time.
- Have your property ready before you show it. If there are a few projects going on still, be certain they will be complete by the target move in date for your new tenant. And be sure that your under construction projects do not take away from the overall presentation of the rental. Best to have everything in order before showing.
- Consider enacting several alternative methods of rent collection, such as online payments, drop box at your office, etc. There is no reason for today’s landlords to be driving to each tenant to collect the rent each month. Also, establish boundaries and office hours that allow your tenants to know when you are available to them, and when you are not.
- Be knowledgeable and know the laws in your city and state, and document everything regarding your rental property business. And don’t forget to be insured.
Follow these tips for the first time landlord, and best of luck with your new business adventure!
