Being a landlord is not an easy business these days. Owning a property and taking care of it is a full time job. We will show you how to be a smart landlord and also that you can have your cake and eat it too. If you play your game smart you will be stress free and avoid the unnecessary hassles involved in owning a property.
The relationship between a landlord and a tenant is always a delicate one. The first time you meet your tenant be cordial and set the right expectations to form a lasting business relationship. For this you need to treat your property as serious business. Every business runs on set rules, so set the rules in the first meeting like how your property should be treated and the rent should be paid.
Hiring a rental agent
Even if it means to shell out some money on your property by renting an agent do it. Treat it like an investment. Rental agents make sure that you get good tenants. Also do not hurry with the screening process. Make sure that the background checks are done thoroughly even if it is a time consuming process. You’re doing this for a fruitful business in the future.
Be a part of your business
Learn about your tenants and be involved in the property on a regular basis. Most landlords forget about their properties once they lease it out and as long as the monies are coming in. Our advice is that you make visits to your property at least once in a month and build a rapport with your tenants. This way even the tenants realize that you care about the property and do not forget tenants are your lifeblood.
Save from your rental income
Try to save at least 15 percent of your rental income for a rainy day. Even if you’re saving it, it is still an income. In the worst case scenario even if your tenant defaults on the rent you will have an income to fall back upon. Until you recover the defaulted amount, these savings will act as a rental income.
When you have tenants you’re bound to have problems and crisis. There may be breakages, damages and the client might claim it out of the rent. In such cases, try to act on it rather than reacting to the situation. Take an appropriate action which abides by rental agreement you’ve signed on. Do not compromise and always have the upper hand when it comes to dealing.
Maintaining your property
Before you lease out the space make sure your property is in a good shape. This will also help you fetch a higher rent. Also give security utmost importance like fixing good locks for example. Do some small things like stocking the bathroom with toilet paper and ensuring it is clean.
Have a professional approach towards your clients. When they talk to you, keep your conversations limited to the relationship that you share. Do not get very friendly or uptight on the other hand. The tenants should know that there is a line that they cannot cross. As long as they respect you they will never try to take advantage of you.
Every tenant is different and you need to get a lease agreement based on their profile. Do not use the same old lease agreement that you’ve been using for years. Even if it means to go to a lawyer and getting a new agreement, do it. Rules keep changing from time to time. So make sure that you are up to date on the legal agreement. Also ensure that your tenant and you follow the lease guidelines. Show utmost consistency in this.
It may sound like too much advice but it is very important to maintain your cool. Tenants will have various demands from time to time and it is very difficult to be at their beck and call. But think from their perspective. Tenants cannot take any actions without your permission, while they have their needs. You need to make smart decisions and see that they’re not compromising and nor are you.
Vacating the property
No tenant who rents will live forever in your property. When the time comes for vacating the premises, make sure you are present there. Do a thorough inspection of the property before the tenant leaves the premises. Also be fair at the same time. If there are severe damages, you need to ensure that it will be taken care of by the tenants. Set expectations and tell that you will be deducting it from the rental advance when you return it. Also give them an option to fix it themselves at the same time. It is also a good idea to inquire with your tenant about the reason for moving out. It is a way of taking feedback from them so that you can improvise.
Keep updating your knowledge
Even if you feel your rental business is going on successfully, do not become complacent. Continue to upgrade yourself. You can join networks in your city or and even participate in online communities of landlord in various social networking sites to keep yourself updated on latest tenancy laws and best practices.
Being a landlord is easy but being a good landlord is a challenging task. If you’re fair in all your dealings with your tenant, you will earn their respect and faith. They may even recommend your property to their friends and family. An efficient landlord will ensure that their tenants move in happy, live happily and move out happily. This is only possible if you’ve been a consistent and caring landlord. These are a few tips that you can use to become a successful landlord in 2014.