If you’re thinking about becoming a landlord, it may seem like an overwhelming task.
However, the rewards of being a landlord are worth it. If you’ve got the time and dedication to take care of your property; this is perfect for you. Landlords can make money by collecting rent from tenants, which means more cash in your pocket at the end of every month. It also provides peace of mind knowing that somebody else is taking care of upkeep on your property while giving them access to their home. Not only will owning a rental unit create financial freedom for yourself but it will be an engaging experience as well.
However, there are things to keep in mind when becoming a landlord, and if you have no experience and aren’t sure what to expect, here are a few tips for new landlords that might make the process a bit easier.
The Screening Process
One of the most important things you should do as a landlord is to have a screening process that is not only reliable but allows you to find the best tenants. The purpose of the screening process is to find tenants who have a good credit score, don’t have any criminal history, will pay in full each month, and have a good track record with rentals.
You could do this online, or as most landlords do these days, go through a letting or real estate agency that will do the screening for you. There are many Winnipeg property management services that not only will free up some of your time, but also allow you to rest assured knowing that your property, at least in terms of finding tenants, is in the hands of professionals.
Detailed Lease
The next thing that you should ensure is that you have a detailed lease, which is something that many new landlords take for granted. The lease agreement is a binding contract that stipulates the rules you have set related to the property.
In the signed lease agreement, you should cover things like whether pets are allowed, if the tenants need to ask for permission before painting and if the color needs to be approved, what the property is going to be used for, how many people can live there, and more.
Having a detailed lease agreement from the beginning helps to avoid any unnecessary complications or issues down the road, and also allows the tenants to know exactly what it expects of them.
Be Professional
One thing that tenants despise more than anything is a landlord that isn’t professional. More than this, if you want your tenants to respect you then you should treat your property as if it were a business. If any terms in the lease agreement aren’t being fulfilled, you need to follow up. If rent is late or has been missed then you need to take steps to collect it, and if there are any issues with the property or anything needs to be fixed then this should be done promptly.
Keep in mind that great tenants are difficult to come by, so by being professional and keeping up with your end of the bargain, you might keep great tenants staying a little longer.
Follow Laws
Something that you absolutely have to do as a landlord knows the laws, which is something that can easily be overlooked. Many laws relating to renting out a property, all of which not only protect the tenants but the landlords too, and if you want to avoid a potential lawsuit, then the first thing you should do is find out what the laws are in your state or city.
Keep in mind that the laws differ from place to place, so if you are letting out property in multiple states, be sure to check the laws for each.
Set The Right Price
So, you have a wonderful home or apartment, and you think it is the best on the market, however, no one is queuing up to hand in their applications. One of the common reasons for this is because the price is too high. Prospective tenants will vigorously check various websites to compare houses and apartments, as well as the prices, to find ones that are relatively cheaply priced. What this means is that if your property is priced too high, well above average market price, you probably won’t get much interest. You need to make sure that you set the right price for what you offer, as well as if everything that’s listed is in perfect condition. A broken stove or similar problems can affect the price, so if you’re experiencing an appliance problem visit napoleonappliances.ca to ask for the repair service you need before listing your home or apartment.
The opposite is true too; if you have priced your property too low, prospective tenants might think that there is something wrong and completely avoid your listing. Research the market and price your property accordingly.