Being a landlord is not an easy feat. When you’re just starting out, you are likely to make some serious mistakes.
To stay on top of your to-do list, remain organized and avoid the common mistakes, here are the best tips for all first-time landlords.
1. “Rent” Is Your Priority
Rent is your income and it makes sense to make sure you receive it on time. Have an aggressive approach so that your tenants take rent seriously. Don’t hesitate to enforce the late charges. Of course, be accommodating towards the tenants who are responsible if they are behind their rent payments for some reason.
2. Learn About the Local Laws
You must make yourself aware of the local laws which include zoning laws, building codes and anything else that’s important. Don’t make this easy as you could end up paying penalties.
3. Partner Up With the Right Investor
You will need an investor. This person would serve as your business partner. Therefore, find one who is transparent with you. Don’t ever make the mistake of partnering someone you don’t know. Find the person with the same values and goals as yours.
4. Screen Your Tenants before Agreeing
This is one of the most common mistakes landlords make. The more unreliable your tenant is, the more troubles you will face. Therefore, spend some time screening the candidate. The ones with a fair, good and excellent credit score are people you can trust.
5. Keep Up With the Necessary Maintenance
Make sure a landscaper, handyman and a snow removal company is at your reach. Of course, you won’t be going through major renovations but you need these services time after time to maintain the property and keep the tenants safe. If you don’t pursue repairs timely, you are violating the habitability of your property.
6. Have All the Terms and Conditions in Writing
Once you are able to find the perfect candidate, have the lease agreement documented in writing. It must be signed by both parties. All the conditions of the property usage must be written in there. If pets are not allowed or you don’t want the tenant to smoke inside the property, have a clause prepared for that.
7. Come Up With an Advertising Strategy
How are you going to advertise your rental property? There are several options. You can create flyers and post them around college campuses, bulletin boards in stores community centers. You can also advertise through an online listing. You can also use a combination of online and offline advertising.
8. Get a Security Deposit
Know the importance of a security deposit. It’s safety against a bad tenant. Before the tenant moves in, you need to have this security deposit transferred to your account. Ask your attorney whether you should be charging 1 or two month’s rent as a security deposit.
9. Stay Organized
Successful landlords always stay on top of bookkeeping. Keep proper records of all the expenses and revenues related to your property. You cannot know how profitable your business is without keeping the property record. You will save yourself a lot of time by staying organized.
10. Have Contact With Local Junk Removal Services
As you may need to do junk removal and estate cleanout from time to time, having the contact of a few good junk removal West Palm Beach FL services are necessary for you.
If you’re a regular client of a junk removal West Palm Beach company, they will prioritize your orders.
Conclusion
So, these are the tips you need to get started. If you have multiple properties, you should hire a property manager for handling the time-consuming stuff.
