Being a landlord for the first time sounds like an easy gig. On average, landlords can expect close to $1,500 in rent for one property.
There is a lot that goes on in the background though. Before you rent out your first property, it's important to make sure you've covered all the important steps. In particular, there are 3 landlord tips you should keep in mind.
Landlord Tips for the First-Time Landlord
When you take on rental property, you're taking on the responsibility to ensure everything runs smoothly. You can make this responsibility easier on yourself if you take care of a few issues from the beginning.
Take Care of Documentation
Before you ever put the property on the market, you need to make sure you have all the proper documentation and certifications in place. This starts with doing your research.
Make sure you understand the housing laws for your area. Follow all procedures for inspections and insurance, and take care of any certification you need to rent property. It's a good idea to consult with a lawyer to make sure you have everything in order.
You also need to make sure you have insurance in place. This protects you in case of damage to the property.
Schedule inspections to ensure your property complies with all regulations. This is something you'll want to consider any time regulations change.
Also, make sure you have a way to keep up with all the documentation involved. You'll want a paper trail for any interaction or transaction involved with the property.
Screen Potential Tenants
You'll also want to put a proper tenant screening procedure in place. You need to check their rental history, their income and credit, and look for any red flags in their history.
Keep in mind that largest portion of renters makes an average of $20,000 to $29,000 per year. You need to make sure your renters are able to pay their rent on time each month.
You will need to stay on top of rental payments. Make sure no tenants get too far behind before you take action.
Keep up With Regular Maintenance
It's tempting to leave maintenance until a tenant has an issue, but this can drive down the value of your property. Make sure you create a regular maintenance schedule so you get the most out of the property.
This includes keeping up with seasonal maintenance. This also includes any necessary renovations such as new carpet or roof replacements.
Make sure any renovations you do add to the property value. This will help you keep your rental prices from plummeting.
Help with Renting out a House for the First Time
These landlord tips are just the beginning. The good news is, you don't have to take care of the property management by yourself.
If you're a new landlord, you have options to help you keep up with the documentation, rent payments, maintenance, and everything else. To find out what your options are, contact us for a rental analysis.