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Owning a property is a great way to generate income when you have reliable tenants. However, this job comes with many responsibilities. If you’re new to this or need some guidance, we’re here to help. Let’s go over some important details involving tenants and teach you how to be a successful apartment landlord.
Screen Your Tenants
The first guideline to follow is screening all your potential tenants. Generally, this means running a background and credit check on all applicants. Consider other criteria to help ensure the qualifications of who you’re renting to, like if the person has ever had any previous evictions or a criminal record.
If a potential applicant’s income or credit score is an issue, but they otherwise seem like a good fit, you can consider getting the applicant to have a cosigner on the lease. Ensure you do a background and credit check on this person too. You can also have the applicant pay a larger security deposit up front.
Follow Best Practices
To be a successful apartment landlord, you must follow some best practices. This means having your applicants sign their rental applications to permit background and credit checks. When you take the next step, you need to have a written lease that outlines all the terms of the agreement. Avoid oral contracts at all costs, as they won’t hold up as well if you run into any issues.
Once you have the perfect applicant and an agreement in writing, consider going digital. The younger generation pays most of their bills online, so letting them pay rent this way gives you a better chance of getting it on time. You can also provide the option of automatic rent payments, and the rent will get taken out of the tenant’s account on time each month.
When looking for applicants, allow them to apply online to streamline the process.
Keep Your Building Safe
Safety is a concern for many people, so your property should be secure. You can try these great ways to improve security in your apartment building. Tenants who feel comfortable in their living space are more likely to renew their leases. Take measures to provide high-quality security at your property. Additionally, ensure that smoke and carbon monoxide detectors are in each unit to keep people safe inside their rentals.
We hope our tips have helped give you confidence about being an apartment landlord. Do your best to screen tenants thoroughly. Remember to get those rental agreements in writing and use the internet to your advantage. Ensure your apartment building is a safe place for your tenants to live. With these best practices, you will find qualified tenants and earn income.