Being a landlord can be a very savvy investment but it does not come without its challenges, especially if you are a first-time landlord. You have to consider all the stages. You need to find and screen tenants. Create and keep to rental agreements, ensure the rent is paid and the property is kept intact. It can be a busy and onerous task to fulfil. So if you are just getting started as a landlord, here are some must-know tips to help you and keep your rental profitable.
Treat your rental as a business
Chances are your rental property might be a side hustle or additional investment to your day job. That said, you mustn’t treat it as a hobby, rather you place the same importance on it as you would a business. There are several ways you can do this;
- Keep things professional with your tenants. It can be easy to get over-familiar and friendly with your tenants but this can cloud sensible business-making decisions so be sure to keep things professional.
- Ensure your property meets all legal requirements and standards.
- Prevent problems before they occur by keeping your premises in good working order. This will also keep you protected from any potential liability should unforeseen or unwelcome claims arise.
- Take out the appropriate insurance.
Consider hiring help
Of course, any additional people that you rely on come with a fee. A cost that you will need to factor into your budget or take out of your monthly rental income. However, in many cases, it is a fee worth paying. When it comes to rental properties professional help can come in many forms and make your life not only easier but less stressful. Here are some ways professionals or professional services can help you.
- Tenant screening. Screening your tenants to ensure you have reliable and trustworthy tenants is vital. There are online platforms you can pay for to screen your tenants online or use a local lettings agency to do this on your behalf.
- Property management. There will be ongoing requirements from you as a landlord concerning your property, such as repairs or ongoing maintenance. If you don’t want to be on the receiving end of calls from tenants insisting upon repairs then consider hiring a property management company such as HOP property to take care of this for you.
Ask for the right price
When renting your property getting the rental price right can make a huge difference to your bottom line. That said you cannot simply ask for the figure you want. You need to ensure that you carry out your due diligence and that it is in line with the fair market rent price. Getting the monthly rental figure right can make a huge difference between your property remaining rented and being rented to the right tenants.
Always have a written rental contract
This is something your property manager would take care of for you but if you are going it alone then you want to ensure you have covered this one thoroughly. Ensure that you have a written rental agreement that clearly states all of the terms and conditions expected of both landlord and tenant. This will help secure both parties’ rights and interests and help keep the relationship professional.