There’s a bit of a learning curve to becoming a landlord. It definitely has its perks, but if you jump in to the deep end, you may make a few mistakes along the way. Here are our top tips for new landlords to help you out:
Learn about the industry before you commit. Do some research. Read books. Talk to other landlords. Go to a seminar. It doesn’t matter how you go about learning about being a landlord as long as you actually have some knowledge about what is involved before you purchase a rental property.
Establish the rules for your rental property. Once your tenants have moved in, you can’t just make up new rules after they do something you don’t like. You’ll know better for the next tenant and lease agreement, but it’s too late for the current problem. Decide what rules you want to have in place, and put them in writing in the lease agreement. Be specific; be sure to state not only how much the rent is and when it is due, but what payment methods are acceptable. Tenants will try things that you never imagine, like attempting to pay their rent in quarters. If you have rules in writing, you don’t have to justify your decisions to the tenant later on. Just refer them to the lease agreement.
Set high standards for yourself and your property. A quality property attracts quality tenants. Keep the property clean and in excellent repair. Don’t forget that the way you treat your tenants has a huge impact on the type of tenants that you will keep. Be professional, yet kind and respectful.
Establish business hours. You probably don’t want to get calls from your tenants in the middle of the night. Outline your business hours in the lease agreement so that tenants know not to call you about routine matters at a time that is inconvenient for you. Of course, you should also have contact information available that they can use anytime that there is an emergency.
Consider hiring a professional to handle repairs and maintenance. Yes, you might be able to save money by doing these things yourself. However, you have to ask yourself whether you have the time to do that and what your time is worth.
Be organized. There is a lot of paperwork to keep track of when you are a landlord. Obviously, you need to retain copies of lease agreements. You also need to hold on to inspection reports, background checks, credit checks, payment receipts, repair receipts, and much more. Develop a system right away so that you can keep all of these documents organized and find them easily when you need them.
Charge late payment fees. You might consider giving a grace period of a couple days, but you need to determine a policy and stick with it. Knowing that there is a definite deadline and that a fee will be assessed for late payments is good motivation for tenants to pay their rent on time.
Respect the privacy of your tenants. Yes, you own the property, but they live there. When you show your tenants that you respect their privacy, they are more likely to treat you and your property with respect in return. If you must enter the property, be sure to give sufficient notice.
Thinking about becoming a landlord in Phoenix or Scottsdale area? Call McMath Realty. We provide rental property management services. We can help you find a tenant, maintain your property, and deal with the financial aspect of being a landlord.
Contact McMath Realty to learn more today.