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4 Tips For New Landlords
Dated: October 21 2020
Owning a rental property is a great way to develop your net worth and earn some extra income. It comes with a lot of responsibility and can be intimidating especially if it is your first time owning a rental.
Here are some tips to help you on your journey as a first-time landlord.
If you are a novice in real estate, it's important to always do some research. Learn to understand the demand on your market to know the competitive rental fees you can charge and if those fees will cover your expenses in having the rental property including the down payment, mortgage, utilities, maintenance etc. Ask your self relevant questions like “are the rental properties in your area appreciating? Will this be worth the investment? Be strategic in the short and long term to be a successful landlord.
Learn and understand rental laws in your state to protect yourself. Know about security deposit rules, tenant notice laws, any inspections and licenses you will need, . Are there any laws in increasing the rent? What are your responsibilities as a landlord as required by law? What limitations do you and your tenants have?
Every business comes with responsibilities and obligations. Keep in mind that in rental business, it is vital to keep business from emotions. For instance, setting boundaries like late fees on a tenant who couldn't pay the rent on time so the past due does not become a habit.
In complex situations, consulting with accountants, insurance companies, lawyers will help you as a landlord so be sure to take their advice when needed.
It is vital to maintain a great reputation. Don't be too greedy who doesn't care about tenants or too lax that your business suffers. Prepare an organized system for handling maintenance requests, get reliable people with whom you can trust.
Determine how you would like to handle payments. Do you want it cash, online or checks? Also know how to organize paperworks, emails, texts or any recording of revenue and expenses etc. Keep records of everything including photos before tenants move in and after photos when the tenants moved out.
You should also set your office hours and let tenants know when you will be available. Set this boundary so they don't bother you at inappropriate hours.
Sell the ultimate living experience
If your business is renting homes, it is vital that you keep your rental in it's best shape just like how a restaurant sells great food everytime or else they will lose their business.
Consider placing nice decors and furnitures in the unit. Properly maintaining and staging your rental will help potential tenants envision their new home plus it looks great in photos too when it's time for you to post it online. Keep them clean, neat and fresh every after a tenant moves out. Eliminate odors, fix anything broken always and update anything outdated when possible.
I hope that these tips help you to make the right decisions. As Confucius said, "A journey of a thousand miles begins with a single step." May this step bring you to owning multiple apartment complexes in the future!
If you need help in finding your first rental property, we’d love to help you! Call us at 907-720-4663 or 907-570-6757.
Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....