Investing in rental property has the potential to be a lucrative business venture, but renting out a property may not be as much of a passive source of income as some may believe. Being a landlord is challenging, especially when you are a novice. From advertising a property to doing a tenant screening, creating rental agreements and collecting rent, there will be a lot for you to accomplish. Things won’t always go smoothly either; you’ll be expected to fix things when they break and negotiate with tenants diplomatically when they don’t follow through on their side of the agreement. Here are our best tips to get new landlords off on the right foot:
- Treat your rental property as a business
- Make the most of online resources
- Set your prices properly
- Keep records
- Consider a property manager
While managing a rental property is more likely to be a side hustle than your main job, you should still treat it like a business, since it is still a source of income. Remain professional with your tenants, keep your finances in order and be sure to do a proper tenant screening before anyone moves in. In order to do good business, it is important to make sure you understand all the necessary laws, such as eviction rights.
These days, the majority of tenants find their rental properties online, which means that the most effective way to find tenants is to create an online rental listing. There are numerous ways to promote your listing via online property portals and social media networks.
Spend some time researching the market to work out what a fair price would be for your rental property. Remember that the price you choose will depend on what is included in the rental, as well as the location. Pricing your rental correctly could mean the difference between attracting good tenants and having a vacant property.
Being a landlord will involve dealing with a lot of paperwork, from deposit receipts to rent receipts and contracts to records of landlord-tenant communication. The best way to stay organized is to create digital records that can be secured safely. Keeping track of things digitally will mean you avoid paper clutter.
If managing your property is becoming an overwhelming task, hiring a property manager might be a good investment. These professionals not only save you the stress of dealing with all the property administration such as marketing the rental or collecting payments, but they also ensure the whole process runs smoothly.
Taking the plunge and deciding to invest in property is a huge step, but it is not a decision that should be made lightly. It really does have the potential to be a profit-making endeavour, but it is important to know what you are getting yourself into. Remember that it is sometimes worth delegating the management of the rental property to a professional. Alternatively, be prepared to put in hard work along the way and be patient with yourself. Regardless of the path you choose to pursue, once you have got into the swing of things the rewards are likely to be plentiful.