Becoming a landlord can be a tricky task, but it has the potential to be a very profitable move. Here are tips to help you get off to the right start and successfully run your rental business.
Understand rental laws and regulations
Familiarise yourself with the landlord-tenant laws in your state to know what is required of you in any scenario that may arise. You can find an attorney to review the lease agreement and other legal documents that you intend to use in your rental business. Remember that the rental laws and regulations are meant to protect you, your tenants, and your property.
Screen your tenants thoroughly
The profitability of your rental property can be enhanced when you find tenants that follow the lease terms, maintain their space without causing any damage, and pay rent on time. In determining if the rental applicant will be a good renter, tenant screening best practice requires that you look at their eviction history, criminal report, and credit report. Additionally, you can ask for job references or past landlords’ references to prove that the renter is responsible and can meet the income requirements.
Keep a reserve fund
A reserve fund is critical in taking care of both planned and unplanned property maintenance. It can salvage emergencies like leakages that must be fixed fast lest they cause further costly damages. Your reserve fund can act as a savings account for renovations that may give your house a modern facelift and possibly raise a higher rent.
Becoming a first-time landlord doesn’t have to be overwhelming. Consider joining a landlords association in your area, as it might give you an opportunity to network and learn from other veteran landlords. You can also work with a professional property manager to help with investment property management tasks like responding to property repair requests and finding good tenants.
Lodge can help you as a property investor to unlock the potential of your biggest asset. We can give you insights that make property management easy, secure, and intuitive. Call us today if you need a property manager to help you save time and money.