12 Tips to be a Successful Landlord
12 Tips for Successful Landlords
As alandlord, it can be tough to manage all the different facets of renting a houseor an apartment. Here are some of the things you can do to ensure yourrelationship with tenants always remains on good terms:
Know FairHousing Laws
Housingdiscrimination is a serious and common issue in the rental housing market. As alandlord it is very important to educate yourself on what you are allowed and,more importantly, not allowed to do when renting your property. You don’t want tounintentionally engage in illegal practices because of ignorance or negligenceon your part, so take the time and do the research on Fair Housing Laws.
Settingthe Right Price
This step can be a littletricky. As you set your rent price, consider how it affects your finances. Rentpayments are the main source of income for your property and should be used tooffset the property’s expenses. To compare your rental income to your rentalexpenses, you should list your fixed and variable expenses. Fixed expenses areyour mortgage payment, property taxes, insurance fee, and HOA fees. Your variableexpenses are utilities, repairs, and property improvements. By comparing incometo expenses, it’s easier to see how the rental price will affect your monthlyrevenue.
To set the right rentprice, however, research your market as well in order to learn the rent priceof similar units in your area. This is ideal for setting a rent price thatmakes sense in your location, and it can be a bit overwhelming. No one wants toleave money on the table but setting a price too high won’t get your place theattention it deserves. If you are unsure of where to start or what the bestmarket price is for your property, give us a call. Working with a Levine HomesProperty Manager will ensure that you have a local expert guiding you everystep of the way.
MarketRental Properties Effectively
To maximize your rentalproperty’s exposure and get the highest number of applicants, it is importantto list your rental online. Sites such as Apartments.comand Zillowwork with dozens of other rental search engines to guarantee your property issearchable.
When advertising, makesure to be as accurate as possible with the description of your rental. This ensuresthat only people wanting the amenities your property provides will apply, thusmaking the process easier and more efficient. Also, people are visual, so it isimportant to post your rental with high quality, well-lit photographs.
Requirea Rental Application
A good rentalapplication should give you important information: name, current addressand reason for leaving, employer, income, references, etc. It’s vital to askthe right questions so you have the information you will need to decide whowill live in your property.
Requirea Credit and Background Check
Credit checks are one ofthe best ways to learn if an applicant is financially responsible or not. Lookfor red flags like outstanding debt, undue payments, bankruptcy filing,and priorevictions. A solid financial history is a predictor that atenant will pay rent on time. Haphazardscreening and tenant selection can often result in problems, such as a tenantwho pays the rent late or not at all, trashes your property, or lets friendsmove in without approval. So, requiring a tenant background check is animportant way to learn whether a prospect will be a good candidate for rental.
Havea Written Rental Agreement
Having a written rentalagreement is the best way to communicate your expectations and protect yourselfin legal situations. Oral agreements are not enough. While they’re legal insome instances (usually for agreements that are less than 12 months), it’sdifficult to prove what was agreed upon without a written document.
A useful rental agreement is specific, and all your clauses must adhere to state laws. You should think through what rules you want to include. Are pets allowed? Will there be a late rent fee? Do you want a noise restriction rule? Make sure your rental agreement is customized for you. If everything is mapped out in the rental agreement, there will be less confusion and better communication between both parties.
If you need help with this, Levine Homes can help. Contact us for help.
Handle Security Deposits Properly
Establish a fair systemof setting, collecting, holding, and returning the amounts tenants pay up frontas a securitydeposit. Inspect and document the condition of the rentalunit before the tenant moves in, to avoid disputes over security deposits oncethey evacuate.
GetInsured
Purchase enough liabilityand property insurance. A well-designed insurance program can protect you fromlawsuits by tenants for injuries or discrimination, and from losses to yourrental property caused by everything from fire and storms to burglary andvandalism.
Make Necessary Repairs
Stay on top ofmaintenance and repair needs and make repairs when requested. If the propertyis not kept in good shape, you'll alienate good tenants, and they may belegally entitled to repair the problem themselves and deduct the cost from therent, sue for injuries caused by defective conditions, and/or move out withoutgiving notice.
This requires somephysical work, know how, and, more importantly, the ability to be flexible inorder to respond to issues in a timely fashion. And a botched repair can wreakhavoc on the relationship between you and your tenant, not to mention theexpense. From getting your property rental ready to making sure it stays thatway, Levine Homes construction department’s available professional in-housemaintenance crew can help you safeguard against any tenant issues when it comesto the upkeep of your property, saving you the time and the headache.
Provide Notice Before Entering a Unit
The State of Californiarequires that landlords give at least 24 hour’s notice before entering theproperty. Notify your tenants whenever you plan to enter their rental unit andprovide as much notice as possible. This will ensure a better relationshipbetween you and your client, as well as legally cover your behind.
KeepDigital Records of Everything
As a landlord, you shouldkeep records of everything from deposit receipts, rent receipts, andmaintenance receipts to a record of all landlord-tenant communication. Digitalrecords can be securely organized without creating paper clutter, and freeonline storage is available through sites like Dropbox and OneDrive.
Holding onto receipts andcommunication records is a good idea in case legal issues emerge. If you haverecords of transactions and communications, then you are more likely to prove yourside in court.
KeepGood Tenants
Finding the right tenants,screening them, and signing a rental agreement takes time and effort that youdon’t want to go to waste. Constantly repeating this process can be exhausting,so the best way to preserve your time and money is to keep good tenants.
If you have a tenant whopays rent on time and takes good care of your property, then you should ask himor her to renew about 90 days before your rental agreement expires. Renewalshelp you avoid a vacancy and can help save time by not having you search fornew tenants.
Conclusion
From managing your rental property business to finding and screening tenants and collecting rent, every step along the way matters. We want you to manage a top-notch rental business without sacrificing unnecessary amounts of time, money, and stress. With the right advice and tools, being a landlord doesn’t have to be hard. If you have questions or concerns about any step along the way, please don’t hesitate to reach out. Or better yet let us do the work for you! Life can be demanding and it’s difficult to manage a rental on top of everything else. From conducting background checks to taking care of the paperwork, insurance, and property maintenance, our extensive knowledge will provide you maximum benefits with minimal effort on your part. Levine Homes trusted experience will ensure that you, as a landlord, are always protected.