Becoming a landlord is a great way to earn extra income, but you must know how to take proper care of your tenants and your property. Rather than make mistakes and learn from them, know what mistakes to look out for, and take steps to avoid them. Here are tips for being an effective and highly favored landlord.
Recognize That Your Rental Property Is a Business
Even if being a landlord is not your primary occupation, treat it with all the seriousness the profession deserves. Make it a habit to look into local, state and federal landlord and rental property requirements and regulations to ensure you always remain compliant. Have a professional help you manage your rental property finances and tax obligations you have as a landlord. You may even want to consult with a legal professional to learn how to handle potential lawsuits from disgruntled tenants. To ensure you have a structurally sound property, work with an expert who offers construction services boston ma to examine the building exterior and interior.
Think About Hiring a Property Manager
Depending on how close you live to your property and your landlord experience, you may need a property management company’s help to take proper care of your tenants, property grounds and the like. Trusted property management companies handle rent payments, help you find tenants and can handle tenant complaints. Of course, you have to pay for management services, but they could make for a great investment if it means bringing out the best in your property and satisfying tenants.
Research Rent Prices
You do not want rent prices that are too high or too low. Do some digging into local rent prices to determine the fair market price. Consider your property’s neighborhood, amenities, building age, recent upgrades and similar factors when deciding on a fair rent price.
Consider your rental property insurance, HOA fees, property taxes and maintenance and upgrade costs when setting a fair rent price. You want to attract tenants, but you also need enough funds to cover the full cost of your real estate investment.
Make Renters Insurance a Requirement
Besides insuring your property yourself, your tenants must cover their belongings, too. In rental agreements, require all tenants to have renters insurance. Explain the importance of renters insurance, and provide contact information for local trusted insurance providers to make it easy for tenants to find a good plan. Without renters insurance, tenants may hit you with a lawsuit for their damaged items.
Get a well-informed idea of what it means to be a great landlord. Put the above tips to good use.