5 Effective Tips For Becoming A Good Landlord
Buying a rental property can be a great source of income, but it also brings with it lots of responsibilities and stress. Whether you are just starting your journey as a landlord or are an experienced landlord, creating good relationships with your tenants is imperative for becoming a successful landlord.
Becoming an amazing landlord takes much more than just buying a rental property, renting it out and collecting and cashing in the rent checks every month. You need to view your tenants as customers and be ready to go that extra mile at every step, in order to be successful. Only when you view your real estate investment as a business can you truly succeed at it.
Here are 5 tips for becoming a landlord par excellence and growing wealth through your rental business.
1. Advertise your property in the right places
Marketing your property through the right channel is key to getting rental applications flowing and selecting the right tenant for your property. The more variety of applications you get, the more choices you would eventually have.
Making use of the right advertising channel based on the type of tenant you want to rent your property out to is crucial. For example, if you are targeting the tech-savvy younger generation, the best place to advertise is online. Facebook marketplace, rental websites, and online ads are all possible options that you should be advertising on.
Similarly, if you want to follow a hyperlocal marketing strategy, local newspapers or magazines and local store bulletin boards are some of the advertising channels you should definitely have in your marketing mix. Advertising through the right channels is crucial for your listing to catch the eye of potential tenants.
2. Screen your tenants
The Fair Housing Act prohibits discriminatory practices in housing. Under the Act, landlords may not discriminate against tenants or potential tenants on the basis of race, gender, religion, familial status, disability, or ethnicity. However, running background checks and credit checks on potential tenants is permissible by the law. Your application should ask for the necessary details without being too lengthy.
The background checks reveal any history of previous evictions as well as any criminal history that the applicant may have. While the criminal record by itself cannot be a basis of discrimination against any individual, it can certainly lead you to further information about the background and history, making you ready to make an informed decision.
Credit checks provide you with information about the applicant’s credit report and credit score. This can also help you determine a tenant’s ability to pay rent. Having a credit score of more than 600 is generally considered preferable when renting. Keeping records of the applications and checks is a good habit to practice for becoming a successful landlord.
3. Understand the legal framework
The landlord-tenant laws vary depending on the state you are in, so it is important to be aware of the legal requirements in your state before drawing up a lease agreement. A clear-cut lease will reduce friction between you and your tenant in the future.
Your lease needs to carefully spell out the duties and responsibilities of the tenant and the landlord. Go into as much detail as possible and include everything from late payment fees to maintenance responsibility and the tenant’s behavior within the lease. Any special rules that you have for your property for example rules for pet ownership should also be included in the lease.
Make sure that every clause that you include in your lease is compliant with the local laws. Any provisions that don’t comply with the local ordinances would render your lease invalid so make sure your lease is ironclad.
4. Take a business-minded approach
The bottom line of becoming successful as a landlord is to treat your rental properties and their management as a business investment. Here are some steps that you need to take to follow a business-minded approach and reach new heights as a landlord.
1. Focus on creating a system
by setting up a set of clearly defined and repeatable processes. By automating the routine and repetitive tasks, you can not only cut down on the time and efforts required, but you can also set up a system that boosts efficiency in the process.
2. Be on the lookout for ways to improve your business
Successful landlords are constantly looking to tweak their operations to make more profit while simplifying the tasks that need to be accomplished. Technology can be an important tool to make this happen. Whether it is utilizing online payments for rent collection or platforms for conducting tenant screening, technology is a must-have addition for smooth operations.
3. Form strategic partnerships
Business owners outsource and delegate tasks that others can do with better results, focusing on the tasks that only they can do to grow their business. The same concept needs to be followed when you are a landlord. Don’t try to wing it and do everything yourself. It is better to rely on the experts for some things.
4. Document everything
Meticulous documentation is the key to business success. Every communication that you have with your tenant, whether it is in application forms, maintenance requests or rent receipts, should be added to the tenant’s file. This not only helps to keep records organized, but it also helps in case any legal issues arise.
5. Focus on customer service
Healthy landlord-tenant relationships can pave the way for your success as a landlord. Once you rent the property to the tenant of your choice, you want to make sure that they stay on and get increased rents over time. Customer service is important for lowering the chances of tenant turnover and increasing your profits.
5. Treat your tenants as your customers
Be available to your tenants. Keeping channels of communication open is crucial for becoming a successful landlord. Tenants feel at ease when they know how they can get in touch with their landlord. Make sure that you give out your business numbers and email address to the tenants as soon as they move in. Specifying the hours during which they can contact you can keep after office hours calls in check, while making sure that you remain available to your tenants when they need it.
Be mindful of your responsibilities as a landlord. Look after the maintenance of the property and prioritize any repairs that may arise. Keeping your tenants happy is key to becoming a good landlord. All repair requests must be addressed within the first 48 hours of receiving them. In case of a major repair that requires you to hire a contractor, you should book an appointment within 24 hours.
Streamlining the management of your rental property
A lot of landlords think that the only two options available to them are either doing DIY property management or hiring a property management company. The former ends up being unprofessional and has a number of potential pitfalls that you want to avoid as a landlord. Conversely, hiring a property management company is often a cost-intensive affair.
The good news is that with the advancement in technology, landlords have another option at their disposal. Property management platforms ensure that the management of rental properties is simplified and at a fraction of the cost so that landlords don’t have to choose between providing the best services to their tenants and protecting their financial interests.
Tirios.ai uses the power of artificial intelligence and machine learning for simplifying the maintenance process for modern day landlords and renters. Download the app today for streamlining the management for your single-family rental properties and improving the renting experience for your tenants.