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Becoming a landlord means you are taking part in someone’s life by providing a place they can call home. Whether you’re leasing as a business strategy or to help someone out, there are things you need to know before handing over the keys. Use these beginner tips for starting out as a landlord to deliver the best experience for your tenants and yourself.
Post the Property Online
The best way to find tenants anywhere in the world is by posting your property online. Many sites make listings easy to manage, and many help you screen and safely find someone who can take over your rental place. Some of the basic information that every potential renter is looking for includes:
- Number of rooms
- Places of interest nearby
- Nearby schools
Post pictures highlighting the location; people are most likely to click and view the property when they see the actual unit in pictures.
Treat It as a Business
Landlords should treat the property and its tenants professionally. You are providing a service, and people always expect the best. Different laws may apply like any other business. Start your journey as a landlord by fully understanding local laws and requirements.
A good reputation will benefit you for future rentals and, hopefully, expansion. One of the many necessary things on your business to-do list is to get landlord insurance. This precaution benefits you, your tenant, and your property.
Consider Tenant Screening
Performing a tenant screening tells you a lot about a potential renter. You can find out if someone pays on time or if other landlords have had any problems with those interested in your property. While prior renting history rarely tells the whole story, it is very important to consider everything as you filter your applications for the best candidate.
There are many benefits of running a background check on future tenants. Importantly, you can also confirm that this tenant is a safe, trustworthy addition to your neighborhood.
Require Renters Insurance
By requiring insurance, you avoid being responsible for the tenant’s belongings if anything happens to them. This service generally has a low cost and can cover many kinds of accidents. Fortunately, most tenants will not have a problem with this requirement. Asking for professional help before putting an insurance requirement clause on the contract is a good idea, as achieving the correct phrasing is crucial.
Draft a Written Rental Agreement
It is always necessary to have an agreement written on paper for legal purposes. Some people like verbal agreements, but these agreements make it extremely complicated to protect yourself if any problems arise. Drafting a written rental agreement is one of the best beginner tips for starting out as a landlord because it gives you the most protection.
A rental agreement must be specific, with clear rules that abide by local laws. State expected pay dates, availability hours, pet and yard policies, and anything else the tenant must know.