Did you know that the average individual has said they are eight percent more likely to rent this year than buy because of the current market? That means that there are individuals out there who are ready to find a great rental.
For new landlords, here are seven tips for first-time landlords to help you manage your rental and find great tenants. Keep reading to learn more.
1. Setting the Rent
First, it is critical to set your rent to the right amount. To discover what this price is, start looking at other rentals in your area. Compare your house against ones with similar amenities, number of rooms, and the location.
You also need to decide if you want to charge more or less than the average. Charging more means your overall profit will be higher but it will be more difficult to find renters. Whereas charging less than normal might mean you aren’t making a good profit.
2. Screen Your Tenants
Once you get a tenant in, it can be challenging to get them out. So, the best thing you can do is to take the time to screen your tenants.
Always require a background and credit check. Take the time to call their past renters. This will save you time and money later on.
3. Consider Allowing Pets
In the past few years, the number of homeowners who own pets has increased. Pets are a huge part of many families and thus, allowing pets increases your pool of renters.
When allowing a pet, consider adding an extra security deposit for each pet. Plus, you can add a little additional rent each month. This money can then be used for any clean-up that is necessary after the renter moves out.
4. Hiring a Property Management Company
A property manager can be a great help with rental properties. Most new landlords find that rentals take up more time and energy than they expected. With a management company, the property owner doesn't have to worry about anything but income.
5. Start Saving
From the beginning, set aside a portion of rent to a saving account that can be used for any repairs. Homes will always have normal wear and tear, and it will help to have the money there from the beginning to pay for any fixes.
6. Require Rental Insurance
Rental insurance will cost your tenant maybe eleven dollars a month and will save you thousands of dollars if something goes wrong. By requiring rental insurance from the beginning, you always know you are protected if an emergency occurs.
7. Protecting the Landlord
Finally, ensure that you have a well-written lease. This document is your number one protection.
Within it, you should have the rules of the rental clearly listed, how much they will be expected to pay, and so much more.
Having a lawyer read over this document might be helpful to ensure the landlord is protected.
Begin the Process Today
All Landlords struggle with finding excellent renters, but those renters are out there. By using these seven landlord tips today, you can start to get better results.
If you are lost or confused, consider looking for a property management company to help with all the problematic parts.