Becoming a landlord is a daunting prospect. Use these tips to give yourself the best chance of success.
New landlords are still riding on the thrill of purchasing a property with the idea to let it. They are so enamored with the process that they forget the nitty gritty of it all… the tenants. Being a new landlord is excellent, you ride those highs to the end. However, it can become a bigger burden than some help, if you don’t manage the property in an effective way.
Things to Think About before New Tenants Arrive
Before you rush off to hire just anyone to fil your empty rooms, have a think through the following factors.
Consider hiring a property manager
Do you need to employ a Property Management firm? The services a property manager offers allows you to rent out the home to a new tenant, without the extra work of being a landlord. You buy the property, assign property management services to look after it, then allow them to find the new tenants on your behalf. They take care of the damages and reparations and only contact you when a large expense or unexpected occurrence affects your property. They may run the property, do the maintenance, and even collect the rent. In short, this method of working allows you to gain the money from being a landlord, without the constant need to manage it yourself.
Length of tenancy agreements
How long you plan on renting for should be foremost in your mind. Is there a chance that you will move into the home yourself one day? If there is, you may want to keep those tenancy agreements closer to three months than a year. If you want to attract long term residents, on the other hand, increasing the length of tenancy allows for that.
If you wish to rent out your property for a period shorter than 30 days, consider a rental agreement instead of a tenancy agreement. It’s less paperwork for a short stay.
Tenancy agreements can be as long or as short as you want them. Usually after the initial trial period, the contract becomes a rolling one.
Can they afford it?
Finding out what your new tenants do for work is one way to evaluate if they can afford your property or not. You can even go so far as to hiring a credit firm to complete a credit check. This helps screen out those with prior financial difficulties.
Tenancy agreements are almost impossible if you have never written one before. Consult a lawyer and make sure the alterations and conditions of the rental are all specified. Who makes the repairs? What you expect from them? How long the tenancy will be, and the price expected each month are all minimal requirements.
Repairs and maintenance
Repairs and ongoing maintenance might be enough to put you off renting out your property. There are inconsiderate tenants out there. Protect yourself from extreme damages by scheduling apartment inspections occasionally. Remember that you must give more than 24 hours’ notice of the inspection. You should also start putting money aside for repairs.
New Tenants are a New Risk
Despite making all these considerations before you rent out your property, there is no escaping the fact that a new tenant represents a new risk. Make sure you collect deposits and rent upfront when you take them on.