Top 6 Tips Landlord Guide – Basics for the Real Estate Investor
Compared to flipping properties, land lording is a long-term commitment with demanding requirements of your time. Before you take the steps toward the job of landlord, examine your capabilities and desires, and make sure that you’re up to it. If you are, it can be a wonderful and profitable experience.
- Are You Cut Out to Be a Landlord? All those number-crunching skills that serve you well in selecting, buying and selling real estate properties for investment are valuable. However, as soon as you take on the role of landlord, people skills are also quite important. Landlord-tenant relationships are often complicated by a lot of legal stuff, but in the end, it’s more customer relations. If your tenants are happy, they generally don’t cause trouble and they pay their rent.
- Don’t Let Your Investment Manage You – Avoid landlord burnout, maintain your life’s balance, and plan your management activities to maintain profitability of your rental properties without letting your investments manage you. This is particularly important when making a decision to move up to multiple properties.
- Prepare Properly Before You Select a Tenant – One of the most important tasks confronting the real estate investor-landlord is the selection of tenants. Shortcut this process, and it can cost you more than money down the road. Learn the simple steps to intelligent tenant selection. There are multiple online companies specializing in vetting tenants, from credit checks to full background investigations. The fees are reasonable, especially compared to the cost of eviction.
- Setting the Rent – Cover all the bases, some might think that deciding on the rental amount for a property is only a matter of matching the market rates. That’s an important factor, but there is room for manipulation of the rent price based on other factors. Learn how changing the rent amount at the beginning can influence tenant choices and long-term occupancy. Do a market rent analysis annually especially before lease expiration.
- Things Break – Plan and budget for it using the property on a day-to-day basis will cause wear and tear, and repairs will become necessary. Plan and budget for these problems, and learn how to handle repairs to keep your tenants happy. Budget for repairs so the money is accessible when needed.
- Don’t Panic when You Get the Call About Mold – But act quickly. In recent years, there’s been a great deal of media coverage of property and health problems related to mold. Learn how to react to and handle a mold call from your tenants.
Ideas by Christopher Smith