Not everybody chooses to be a landlord in life, but being a landlord can be a very rewarding experience. Landlords have a lot of responsibilities so you have to consider it as a second job. The only way that it wouldn’t be a second job for you, is if you speak to a property manager and ask them to be the landlord for you. They will be the go-between between the tenant and yourself, they will handle all the rental payments that you collect. They will also handle all the maintenance, which makes them a very important tool for another note.
No matter where you are located in the world, having a free rental analysis is an excellent place to start if you want to start renting out your home. Being a landlord can be significantly more rewarding if you take five basic precautions to heart. Below, we’ve got four brilliant tips that you need before you start on your landlord journey.
- Get some insurance. If you’re going to be a landlord, you need to seek out specific landlord insurance to keep your home safe. Of course, nobody brings tenants in and expects that home to be ruined. You deserve the very best when it comes to your house, and the right insurance can protect you from any damage the tenant causes and also the incidence of natural disasters and hurricanes, and earthquakes. You don’t want to be liable for any compensation claims that a tenant may make.
- Keep the screening process strict. It doesn’t matter how many people express an interest in your rental home, make sure that you screen them properly. You want to ensure that you are taking on tenants who are reliable to pay on time, don’t have a history of eviction, and also are employed and able to carry the rent. A property manager can do the screening process for you, and you can either do a background check for criminal issues.
- Keep the lease agreement clear. This is where a property manager can come in handy. Speak to a lawyer and draw up a lease agreement that is a binding contract between you and your tenants. It should outline how and when the monthly rent is collected, and the behaviors that are not permitted in your home. There should be rules addressing any property alterations as well as parking, subletting, and even pets.
- See if you can get an extra income. Check the market rent currently in the suburb in which you are renting out your home. You might find that you’re now charging less than market rent. While this is a good thing if you have reliable and happy tenants, if you need to be able to up your rent because your interest rates have changed, approach your tenants in the home and see whether they can handle a rent increase. If they can’t, it may be worth checking to see if you should put your home on the market.