Owning property and renting it out to people is a lot of responsibility. A lot of people take on the role without fully understanding the pressures and moving parts that go with the job. It’s important to be well-informed. Check out these things to consider before becoming a landlord.
Handling Background Checks
Don’t conduct business under the radar. It gives off a sketchy vibe. What you might consider helping those in need could actually damage your business, property, and reputation. Do things the right way and follow everything to the letter.
Conduct background checks on all potential tenants before considering them as options. Do a background check on their finances, credit, and history as a tenant. Ask their past two landlords for a reference to see what you’re getting into. You don’t want to deal with a difficult tenant.
Expect that your tenants will be late with their rent money sometimes. Even if they don’t pay rent, you still need to cover the mortgage of that property. Create a backup plan for when they are late. You should also expect problems with the building at some point or another.
Secure finances for those moments. You never want their neglect to reflect poorly on your investment. Ensure you have a fund for emergencies and rainy days for when an issue occurs in the building. Your tenant will need you to handle the issue immediately, so it does not disturb their living situation.
Dealing With Tenants
Not every landlord is lucky. Sometimes they get bad tenants. When they do, they need to deal with them. Try to maintain a good, trusting landlord-tenant relationship.
When it comes to turning over the property between tenants, there is a lot you will need to do. It’s more than just handing over the keys to the next renters. Make sure you have all your ducks in a row for this day. It’s a process. You want to ensure nothing slips through the cracks.
Maintaining the Property
Never neglect your property. Don’t wait for a problem to occur before you make yourself present to your tenants. You need to communicate with them more often than just on the first of the month to collect rent.
Check in on the property and conduct regular maintenance checks to ensure everything is working properly. Conduct these maintenance checks before the new tenants move in so that there are no surprises, and you know the state of the unit from the last renters.
Always remember and consider that becoming a landlord requires an active approach. You can never just wait for things to happen.