For many people, buying a rental property is a great investment. For some, however, investing in rental property can be a nightmare. The best way to make owning property a successful and stress-free endeavor is to know how to be the best landlord that you can be. If you can follow a few simple tips, renting your property can be a successful investment.
Treat Your Investment Like A Business
If you were to invest your money in a store or a restaurant, you would treat either one like a business. Many landlords treat their rental property like a hobby. This is a mistake. You need to take your job as a landlord seriously. For example, in business, you have contingency plans in place. You should do the same with your rental property.
Plan ahead for any problems that can occur. If you start treating your responsibility as a landlord more as a business than a hobby, you will find more success. Consider using sites from professionals like Carter Real Estate that offer landlord services which allow you to view invoices, managed properties, expenditure reports, etc.
Do Thorough Screenings
When it comes to getting tenants to move into your rental property, make sure that you are renting to the right people. If you rent to undesirable individuals, you will end up losing money. There are a few things that you want to look for in a tenant.
- All tenants should make at least three times the monthly rent that you are charging. This will ensure that your tenants will be able to afford to pay their rent on time.
- You should avoid renting to a tenant who has been evicted from an apartment in the past. If they had no problem doing things to result in an eviction with another landlord, chances are they will do the same with you.
- You should avoid renting to someone with a recent felony on their record.
- It is important to get reference from former landlords. If a tenant was their former landlord’s dream, chances are they will be a great tenant for you to rent to as well.
Treat Your Tenants With Respect
Nobody is going to want to stay in a place where they are not respected. You don’t have to be best friends with your tenants. Actually, you don’t even need to like them. You just need to show them respect when you interact with them or if you need to enter their home. If a tenant feels respected, they will likely want to stay. This will prevent you from losing out on rent payments while you are trying to find a new tenant to replace one that felt disrespected by you.
Don’t Be a Pushover
While you should treat your tenants with respect, you don’t want to be too nice. If your tenants think that you are too nice, they will start walking all over you. Over time, they will start being late with their rent regularly, and will stop maintaining their unit the way they should be. There is a fine line between respect and being too nice and you need to be careful not to cross it.
Being a landlord can be a difficult job. If something goes wrong in a tenant’s unit, it is your responsibility to address the problem right away. If the problem is something that you don’t know how to repair, don’t try. You could end up doing more harm than good. You should hire a professional. It is also a good idea to get to know other landlords. Other people in the same business as you can give you advice when it comes to owning a rental property. If you don’t know anyone personally, there are several real estate blogs and forums where you can get the advice that you need.
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