Are you thinking of putting your home up for lease? Renting out your home is a great way to earn passive income, but, as with any other endeavor, the life of a landlord isn’t always rosy.
Aside from being constantly on the ball (or paying someone else to be), this active investment lives on its rental contract and will only be as good as the terms outlined in the documents. That said, information and rules also need to be given some serious thought.
Indeed, the journey to becoming a successful landlord may not run as smoothly as you’d like, no matter how involved you are. But, with these nine helpful tips, you’ll be able to manage the road to successful renting, one-speed bump at a time.
Think twice before going through with expensive renovations
If you’re looking to have some expensive renovations done to your rental, and your property is in a neighborhood where rental fees are in the mid-range, think twice before going through with it! Ideally, rent fees should cover your renovation costs, so there’s no point in undergoing top-of-the-range renovations and remodels if you can’t earn it all back. Get to know your market, figure out how much rent you can charge, and use these as a reference in working out a renovation budget.
Know the local laws by heart
If you’ve chosen to manage the rental yourself, it’s only proper to know the ins and outs of your local legislation. Knowing the local laws by heart will keep your rights as a landlord protected while being up to date on your renter’s rights, as well. Get all the information written on the tenant agreement, and make sure you and your tenant know where you both stand from the get-go.
Your home becomes a business asset once you decide to put it up for rent, so it should be insured as such. Get in touch with rental property insurance providers to see what they can offer. Go for products that cover dwelling protection, detached private structures, and liability. It’s also good to consider optional extras like appliance coverage, rental income, and water damage protection.
Check your Pet Policy
You may be a bonafide pet lover, but as a landlord, it’s best to reconsider allowing pets into your property. Even the most well-behaved pets may shed and leave hair everywhere, and at worst, cause major damage to carpets, walls, and furniture. When this happens, future tenants will be instantly put off, and it’s not going to be a good look for your business. If you decide to allow pets, consider a pet deposit to cover deep cleaning costs at the end of the lease.
Be vigilant in screening tenants
Late payments, no rent, and other problematic scenarios can easily be avoided by properly screening your prospective tenants. It may not seem nice to treat people in this manner, but you must remember that your investment and revenue are at stake, so pay attention to credit scores and insist on rent references and proof of income.
Create an airtight agreement
Have you found your first tenant? Get everything down in writing, including house rules, dispute procedures, and processes for how you’ll deal with late fees or non-payment. Your tenancy agreement should also be reviewed by a legal professional to protect your rights as a landlord, as well as your tenant’s.
Run it the Modern Way
Traditional methods like sticking a sign in the yard and posting an ad in the paper won’t work as effectively as they used to. Running your rental the modern way (i.e., online platforms, social media ads, etc.) reaches a much wider audience and allows potential tenants to thoroughly check what you have to offer, saving you time on pointless phone calls. The internet is also a great alternative to take rent payments as it’s far quicker and safer than waiting for a cheque in the post, which could bounce, leading to you paying extra fees.
When treating your rental property as a business, it’s essential to keep tabs and records of the rent you receive, any expenses you incur, including your mileage to attend to rental needs, late fees, and receipts. Good record keeping will prevent penalties and give you an idea of how profitable your property is and how you can improve it.
Rent must take priority
Surprisingly, it’s not uncommon for landlords to be lax when it comes to pursuing rent. Remind yourself that rent is your revenue, so you must stay on top of it. It may go against your nature, but sometimes being aggressive to late fees and unpaid rent is the best thing to do, especially when tenants refuse to pay and will not communicate.
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Are you thinking of putting your home🏠 up for lease?💵 Renting out your home is a great way👌 to earn passive income💲, but the life of a landlord isn’t always rosy.😓 So, to manage the road to successful renting😍, check out our 9⃣helpful tips for would-be landlords!👍❣️
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