There are 44.1 million households that rent in the US market. There’s a double-edged sword with that statistic.
On the plus side, there’s a vast supply of tenants that can fill your properties. It also means that there’s a higher likelihood that you might rent to a less-than-perfect renter. Tenants that are hard to work with can be a detriment to your income potential.
Knowing how to handle yourself as a landlord comes with time. In the meantime, read these tips for landlords to improve your renting prospects.
1. Don’t Skimp Out on Screening
It’s a mistake a lot of property owners make. You should forego a proper screening procedure.
Do your due diligence with prospective renters. It’s exciting to have someone interested in renting your property, but there are millions of potential others. Don’t skip over interviewing your tenants; it can lead to disastrous results.
2. Learn the Rules
As a landlord, you’re protected by some laws and regulations. However, your tenants are well-protected by Tenants’ Rights.
Discuss these rights with a lawyer or review the laws yourself if you have the proper background. The gist of the law is that you must maintain the property to be inhabitable, and you must give proper notice of eviction.
If you’re having trouble with an eviction, you need a lawyer. The team at Rocketeviction.com are specialists.
3. Adopt Better Technologies
It’s time to move away from paper and pens. It might be comfortable, and there’s a learning curve with new tech, but adopt it.
Accounting software and property management programs are made for your convenience. They can save countless man-hours.
4. Keeping the Good Ones
There may be 44.1 million renters, but only a small sliver of them are good tenants. Do everything in your power to keep the good renters in your home. Offer incentives, deferment periods, or even forego rent hikes.
A little money spent now could be a lot of money saved later.
5. Consider a Property Manager
Property management companies only ask for a small percentage of the property’s income. If you’re a successful landlord, and you have a lot of properties, managing them yourself may no longer be feasible. It might be tough to relinquish some oversight, but it’ll do you some good.
6. Require an Application
Make sure you know the financial background of your tenants. Enforce an application process before renting to all renters.
Check their credit, their savings, and their employment status. All of which can affect your investment risk.
7. Have Everything in Paper
Having a paper trail is vital, especially if it comes to blows between you and tenants. Everything that has been verbally agreed upon needs to be in writing. It will save you in court.
8. The Right Rates
It might feel like you’re punishing your tenants, but it’s how the market does business. Rent rates go up. Follow the market trend and increase your rental rates each year; a typical hike will be 5% to 10%.
Be wary of rent control laws, though!
Tips for Landlords to Remember
Owning an investment property isn’t as easy as it seems. There are a lot of bad renters and caveats in the process. Make sure you take these tips for landlords to heart.
Your screening and application process should be rigid. Once you find good tenants, keep them, but don’t be afraid to increase rental prices. Learn the rules of being a landlord and adopt new technologies.
Looking to be the best landlord possible? Check out our other articles on landlord tips and property management.