Working as a landlord for the first time is an exciting
new opportunity, but it’s important to go about it the right way. Landlording
is a more challenging job than many people think, especially if you don’t do
your due diligence and take care of your tenants and property.
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Legal considerations, insurance, and property
maintenance are just a few examples of responsibilities and potential problems
that landlords are expected to take care of on a daily basis. All of these can
be overwhelming to a newcomer, but the right approach and preparation make all
the difference. If you just became a landlord, or are considering buying your
first rental property, take a look at a few helpful tips for first-time
landlords.
Always screen
your tenants thoroughly
Failing to adequately screen tenants is a common early
mistake, and it often comes back to haunt you. Don’t wait for a seemingly
innocent tenant to burn you — make sure that anyone who rents your property has
gone through the proper screening channels. A screening report on a potential
tenant should always include their credit score and history, criminal history,
and any prior evictions. Many experienced landlords also request employment and
pay rate information as well as references from
previous landlords.
In the past, screening tenants was a drawn out and
complicated process. Luckily, modern technology and the internet has changed
all that. It is easier than ever to perform a tenant
credit check using any number of online services that compile and
lay out all pertinent information on a potential tenant in an easy-to-read
screening report.
Treat your
tenants with respect and fairness
Landlord and tenant relationships can be a balancing
act. Many newer landlords are hesitant to be strict or set too many rules in
their properties, in hopes of building a positive rapport with tenants. Other
landlords adhere to a more stern philosophy. The approach you choose ultimately
depends on your personality and preferences, but no matter what, it is most
important to be open and respectful with your tenants. Lay out your rules in a
clear and concise manner, and be sure to put everything in writing.
Additionally, you should always be open to having a
conversation with your tenants to hear out their concerns or opinions. The
landlord-tenant relationship is very much a two-way street, and a certain level
of respect from both sides is necessary for a truly healthy professional
relationship. This should have nothing to do with personal feelings; you and
your tenants don’t need to be best friends, but you need to trust each other’s
word.
Branding and
reputation matters
Make no mistake, working as a landlord is essentially
running a small business. While that may be hard for some newer landlords to
wrap their heads around, it rings true nonetheless. With this in mind,
reputation and branding matter. Just like a car
dealership, restaurant, or retail store, landlords need to build up
a trustworthy and attractive business reputation.
This sentiment rings especially … Read More