Whether you’re letting out your first property or your fifth, there will always be new learning curves and improvements to be made for both you and your tenants. To help you get the best out of your property, we’ve compiled a list of 8 things every landlord needs to know.
1. Get insurance
Unfortunately, there’s no clear-cut way of knowing how well someone will look after your property until they are living in it. Insurance is the best possible safety-net for your property in case anything goes wrong. In protecting your property, you can protect your return on investment.
2. Be aware of the facilities in your property’s location
Even in a market where demand is so high, you will need to market your property to the right audience. For example, if your property is located with nearby schools and playgrounds, then describe your property as a family home. Likewise, if it is in a city center or a commuter belt, you can market towards students and roommates.
3. Establish an agreement
Make sure there is a clear agreement settled between you and your tenants. This way, you won’t fall into the trap of ‘he-said-she-said’ should you come across any signs of trouble. Signed agreements between landlord and tenant should outline how security deposits are handled, the allocated responsibilities of each party, insurance, and taxes. Once both parties have signed and agreed, there is no room for misunderstanding.
4. Make your rules clear
Protecting the condition of your property is your responsibility as well as your tenants. It’s important that you lay out your conditions and standards clearly and with precision. Miscommunication can play a big factor in disagreements between landlords and tenants, so it’s important your tenants know exactly what is expected of them.
5. Run a background check
It is essential that you run a background check on any potential tenants. Checking someone’s criminal background can give you a good idea of whether the individual has a stable home life, and if they’re able to commit to a long-term lease. Invest your time into using online resources for a full background check, or even get in touch with previous landlords to gauge how successful their last tenancy was.
6. Routine check-ins
To ensure that your standards are always maintained, it’s important to run routine check-ups. Your tenants should expect to hear from you on a regular basis so that they aren’t letting their standards slip. It’s also reassuring for the tenants to know that you are keeping an eye on things and are available for any help they may need.
7. Maintain your property
Make sure your property is always in good and working condition. If you’re aware of a maintenance issue, then resolve it as soon as possible. Neglecting or delaying repairs will only cost you money in the long run.
8. Set aside some money for emergency funds
It’s important to always be prepared for any hiccups. Think ahead and set aside a small amount in case anything goes wrong. For example, if your property unexpectedly becomes vacant for a short period, you should have enough money in your emergency funds to cover mortgage payments temporarily without rental income.
Things won’t always go to plan, but as long as you’re thinking ahead and seeking out the best tenants possible, the property investment world is your oyster.
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