For most of us, rental home management is a trial-by-fire, learn as you go, unpredictable journey into the unknown. Countless laws, innumerable statutes, and unknown property deficiencies are just some of the infinite tripwires and obstacles designed to hold you back on your way to stress-free passive income.
When you get the keys to that first rental property, there’s a pep to your step. The birds are chirping. The sun is shining. And your mind is SPINNING. There are so many landlords don’t know we could write a book on it. Oh wait, we already did that. However, there are a few key general points first-time landlords should absolutely follow if they are to be successful in the doggie-dog world (looking at you, Michael Scott) of real estate. Just kidding, we mean the dog-eat-dog world of real estate.
As a real estate broker, you see a LOT of potential applicants. You see good ones. You see bad ones. Some are a complete and utter waste of time. Others are from a dream. In the past, it was impossible to really get a grasp on the client you were about to show a property to before meeting them face-to-face. Now? Not so much. Enter RenterEvaluation’s unparalleled pre-qualified background check.
One thing about passive income: it’s not always passive. When mortgages are rearing their ugly head, and rent payments are “mysteriously” absent, your blood pressure will rise and your bank account will fall. As a landlord, you need to act and act fast when something is out of place, but it’s not always so easy since so many of us are landlords “on the side.”
Tenant vacancy racks up costs by leaving you out of pocket for rental income and forcing you to cover the mortgage out of your own pocket. It wreaks havoc on your wallet, your peace of mind, and your very lifestyle itself. As a landlord, it is important to mitigate the disaster that is the tenant vacancy but it is difficult to know where to start.
Evictions suck. There, we said it. They wreak havoc on your wallet, deteriorate your mental health, destroy your property. Angry cash-strapped tenants neglect your rental property while they struggle to claw their way of late rental payments. Meanwhile, you foot the bill for multiple mortgages and court costs and eventual renovation/cleaning/maintenance fees while a judge looks upon your case.
Reaching out to prospective tenants is essential if you are looking to rent out your property. To have your vacancy catch the attention of quality renters, you will need to put on your marketing hat and sell them on it. Investing the time to adequately promote your unit will bring in a bigger pool of candidates and increase your chances of finding the right fit for your property.
As a landlord, you can find suitable tenants for your properties on your own without having to enlist a professional realtor. But while there are several benefits to that approach, there are also negative aspects to consider.
Rental property requires regular maintenance and when a landlord and a tenant sign a lease agreement, they are getting into a contractual relationship as to its upkeep. The shared responsibilities and obligations need to be clearly delineated in the lease and must be compliant with applicable state laws. Understanding who\'s responsible for what might be the best way to prevent any potential disputes.
FACT: As a new landlord, you want to turn your rental property into a successful source of income. But, the process can be daunting if you don\'t have the right skills. In order to guarantee the rentability and profitability of your rental, you must learn how to work smarter in order to avoid common pitfalls. Our tips below will help you ensure you run a lucrative business.