Becoming a real estate investor can be a highly lucrative, rewarding career or additional revenue stream. It’s one of the most reliable investment opportunities and can help you achieve your financial goals.
However, it’s not quite as simple as buying a house and watching the money flow in. Being a landlord comes with unique challenges and responsibilities. And to get the most out of your investment, you need to come prepared.
To help you get organized, we’ve put together a first-time landlord checklist. Using this list, you can avoid common pitfalls and become a successful rental property owner. Read on to learn more!
Choose a Rental Price
The first step is to choose a rental price. Now, you don’t want to choose a price so low that you struggle to pay the mortgage on the property (take a look at dashbuyers.com to learn more). However, you don’t want to set the price so high that you can’t find a tenant.
Research comparable rental properties in the area before setting a price. It might even be a good idea to reach out to a property manager or real estate agent for help.
Market the Property
Once you have a rental price in mind, it’s time to market the property. Take plenty of well-lit, high-quality photos for your online listings, then write up a short description of the house and surrounding area.
It’s a good idea to allow showings as well. If you don’t have a lot of time to spare for giving tours, consider setting an open house date to allow multiple prospective tenants to view it at once.
Screen Potential Tenants
The tenants you choose for your property can make or break your experience. A great tenant will make being a first-time landlord a breeze, while a bad tenant can be an absolute nightmare.
For this reason, one of the best landlord tips we can give you is to choose your tenants with care.
Screening is a must – run both background and credit checks on all applicants, and ask for references. Take the time to contact their previous landlords to get an idea of what you can expect from each tenant.
Prepare a Lease Agreement
A good lease agreement is watertight. Don’t just download a sample lease from the internet and call it a day. Do your research and get advice from a landlord-tenant lawyer before making your final draft.
Your lease should cover all rules and rights, as well as all financial considerations. Upon signing the lease, your tenants should know how and when rent is collected and how their security deposit will be returned to them.
Also read – firestick won’t turn on
Maintain the Property
Speaking of security deposits, a good tenant approaches renting property as investing in their own home and treats it as such. To be a good landlord, you have to meet them halfway and do all necessary maintenance.
Between each tenant, repair any damage (using the previous tenants’ security deposit, if applicable), clean the unit, and change the locks. When your tenant contacts you with concerns or repairs, address them quickly and kindly.
Find Success With This First-Time Landlord Checklist
Becoming a landlord is more than creating an additional stream of revenue for yourself, it’s providing others with the safe, comfortable home we all deserve!
Finding your stride as a landlord isn’t as easy as it might seem, but with this first-time landlord checklist, you can get the most out of the experience.
In need of more advice for becoming a successful landlord? Take a look at our blog!