Owning a rental property is a great way to generate income while gaining equity. Use these top 10 tips for landlords to keep your investment properties running smoothly.
Check out your tenants before renting to them
Always screen your tenants by checking their credit history, running a background check, and calling their references. Use a written rental application to help you gather all of this information. Checking out potential tenants before you rent to them helps you to avoid costly problems later on.
Always use a written lease or rental agreement
This document should outline all of the details of your agreement, including how repairs or complaints will be handled and what type of notice you must give before entering the rental property. Of course, the amount of rent, due date, and late fees that will be assessed should also be included in the lease or rental agreement.
Set up a standard system for handling security deposits
Be clear on what the procedure is for collecting and returning security deposits. Be sure to inspect the property before a new tenant moves in and document its condition in order to avoid conflicts later.
Keep the property in good repair
This means responding to requests for repair by the tenants promptly. If you fail to care for the property, you risk losing tenants as well as devaluing your property. The tenants may have the right to make the repairs themselves and deduct the cost from their rent payments if you fail to make repairs as requested.
Make sure that the property is safe and secure
This can be as simple as making sure that doors and windows lock properly and providing proper exterior lighting.
Give notice to the tenants before you enter the property
The amount of notice that you are required to give varies by state law, but at least 48 hours is preferable. Find out what your state requires, and give your tenants as much notice as possible.
If the property contains lead or mold, let the tenants know up front
If you do not disclose those information and the tenants develop health problems as a result of exposure to these environmental toxins, you could be held liable.
Choose a property manager carefully
Do a background check and choose someone who is reputable and reliable. As the landlord, you can be held liable if the property manager causes damage or commits a crime on your premises. In addition, you should be very clear about the responsibilities of the property manager in maintaining your investment unit.
Carry property insurance and liability insurance
Insurance will protect your property from damage caused by natural disasters or crime, and it will protect you from legal action by your tenants. A good insurance policy is an essential component of owning an investment property.
Try to resolve any conflicts with your tenants informally
If there is an issue with the tenant that doesn’t merit eviction, try to meet with them and work it out. This will help to keep you on good terms with the tenant and save you the cost of hiring a lawyer and filing a lawsuit.
If you own an investment property or are considering purchasing one, contact McMath Realty to learn more about how we can guide you in your journey as a landlord.
We offer a variety of services to assist you, including investment consulting,property management,rental management,property inspections, and home maintenance.
We can advise you on how much rent you should expect to earn from your house, condo or townhouse. In addition, we can help you learn how to make sure your property gets rented quickly.
We invite you to give us a call at
(602) 340-1222
with any questions that you might have. Or, you can contact us through this page: https://mcmathrealty.com//contact.php
We look forward to helping you manage your investment property.