First Time Landlords: Tips and Tricks

March 5, 2021 admin

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Before Renting to Tenants

Do you know the market? I am not talking about supermarkets, but rather the rental market. If you have already purchased your rental property, research what other rental properties are going for in your area.

If you undervalue your home, you might not bring in enough in rental income to cover the mortgage and additional fees. Overpricing your rental can prevent good, potential tenants from even coming to an open house. Keep in mind if you will be adding additional fees for allowing pets. Determine the utilities the tenant is responsible for paying, and if any utilities will be provided for the tenant.

First Time Landlord Tips for Renting to Tenants

Do you know the best way to go about finding good quality tenants for your rental property? It can be tricky, especially for first-time landlords. Years ago, the best way, well, the only way really, was to put your listing in the newspaper. However, times have changed and so has technology.

There are so many different avenues to choose among, it can be overwhelming. Sites such as CraigsList, Trulia, and Facebook can help you to cast your net to see if your rental property is set at the right price to attract tenants. Getting eyes on your listing is a great way to bring qualified tenants to your open house events. But remember, being objective is an essential part of running a business, and property management is a business.

Cold-Hearted or Savvy Landlord?

Background checks, telephone calls, and income verification are essential parts of the rental property management process. It can be easy, especially for new landlords, to take pity on potential and established tenants. If a tenant violates a lease clause, landlords need to stand by their legally binding lease agreement. This includes late fees and any damage that the tenant may cause to your rental property.

Landlord Rights for Accepting and Terminating Tenants

Being overwhelmed by the amount of qualified tenants sounds like a great problem to have. However, even such a wonderful idea can be challenging. Sorting through the applications and weighing tenants against one another can be difficult. However, ultimately, you will need to accept a qualified tenant.

A legally binding lease helps to ensure that both parties know what is expected during the duration of the lease. If the agreement is broken, you, the landlord, will need to reinforce the rules. This can mean a warning for the first time, depending on the severity of this issue. If the breaches continue though, you might need to take further steps to terminate the tenant lease agreement.

First Time Landlords Need to Be Patient

You have tenants who are paying rent on time and abiding by the rest of your lease agreements. Great! But that does not mean that the money will start being deposited by the wheelbarrow into your account. After covering the costs of the mortgage, insurance, and other fees associated with owning a rental property, remain realistic about your expectations. It may take a few years and a few headaches initially. However, down the road, you will get the hang of it and your rental property can help to make your life easier.

Conclusion

Owning and operating your rental property can be quite lucrative, but also quite stressful. First time landlords may look at the opportunity as a great way to make extra income, which is true. However, there is a lot more that goes into being a landlord than just sitting back and collecting checks. Professional property management companies, such as The Property Manager, are here to help with the experienced know-how to assist through each step of the way!