If you’re looking for a great way to generate passive income then look no further than investing in a rental property. Becoming a landlord can be one of the smartest financial decisions you make. Before you dive in, however, it’s important to know that you’ve got your work cut out for you— no one said it was going to be easy.
Being a landlord it wasn’t as simple as collecting rent every month. It’s up to you to provide a comfortable living environment for your tenants and take care of your end of the lease terms.
If you recently become a landlord, or you’re thinking about becoming one, here are some important tips you’ll need to know.
Prioritize Repairs and Maintenance
Despite how easy you might think it is to find a tenant, the truth is it’s not so easy to find quality ones that stay. As the landlord, it’s in your best interest to find great tenants that stick around. Not only is it less hassle keeping the same person for years, but it’s also much more affordable. Having to place ads and taking time away to screen tenants costs valuable time and energy.
So, once you find a good tenant make sure you give them every reason to stay. The best way to do that is by responding to their maintenance and repair requests promptly. Whether they report a pigeon problem or one of their appliances is out of order, the sooner you can take action, the happier your tenants will be. It’s also in your best interest to act quickly, since in many cases letting a problem get worse will only be more difficult to solve later.
Screen Tenants Thoroughly
As the thing famously goes,” don’t judge a book by its cover.” Even though a potential tenant may seem like the perfect choice, they may not be all that they’re cracked up to be. A thorough screening process is essential to ensure you find the perfect candidate.
You must check their credit, their references, and conduct background checks. Above all, make sure that you verify their employment, since this will be a key factor in whether they can reliably pay you rent. Cut corners and you could find yourself in a huge legal battle!
Create a Lease With a Legal Professional
While it’s true that you can find free lease templates online, they may not include everything that is specific to your property. Ideally, you should consult with a legal professional to ensure that your lease agreement is as comprehensive and thorough as possible. Yes, this requires a small investment, but protecting yourself is well worth the price!
Be Clear With Your Communications
As a landlord, it’s up to you to establish the law of the land. This involves clear communication with your tenants about what is expected of them. Stay proactive about sending messages concerning important dates and events, and bring up any issues in a clear and concise manner.
Remember, being a landlord comes with a lot of challenges, but it also comes with a considerable amount of rewards if you can get it right.
