4 Smart Moves Every Landlord Should Do To Be Successful
Being a landlord is a big responsibility. Some people think that they will be able to buy a property, find nice tenants, and collect all the cash. However, it takes a little more than that to be successful as a landlord. Those who have experience with tenants and owning rental properties will be the first to offer up their advice and insight. If you’re considering becoming a landlord or you already are one and just need to step up your game, you’re in the right place. Here are four smart, not-so-common ways to improve your chances of success.
- Get it in Writing
Always have a proper, legally binding lease that is physically or digitally signed by any tenants. If something goes awry, you can trust that the law will be on your side because you have all the right paperwork. Any amendments to the rental agreement should be documented, as well. No matter how good your tenants seem, you need to have every detail of your landlord-tenant relationship in writing for your security and peace of mind.
- Get Landlord Insurance
Most people who consider investing in rental properties aren’t initially aware that a typical home insurance policy isn’t going to protect them from everything they need to be protected from. There is specific landlord insurance designed for those who own properties and rent them out to others. These policies protect from things like tenant damage to the property, loss of rental income coverage, and tenant default protection. Furthermore, if you do NOT purchase this coverage and try to file a traditional home insurance claim for damage or loss related to a tenant or rental property, the insurance company will reject the claim because you didn’t have the right insurance policy.
- Get Market Rental Rates
You can’t just take a guess and slap a price on your rental unit. Make sure that you consider the type of housing you have to offer compared to other similar properties in the market. Your rental rates should cover your financial expenses, at the very least, and hopefully, it will net you a profit. However, you shouldn’t raise your rent outside of the market range just to hit the profit margin. It doesn’t matter how great your rental is; if the rent is too high for the market, no one is going to want the place anyway.
- Get Online Payment Services
People conduct millions of digital transactions daily. Money magazine reported that millennials pay up to 61% of their bills online, and older generations pay as many as 42% of their bills via the internet. From simple payment providers like PayPal to integrated online payment portals, you should find a way to accept online payments from your tenants with minimal fees for them. Not only will this give them more convenience, but it can do many things for your landlord business. First, you will have fewer late payers, and people won’t have as much room for excuses related to the mail, checks, money orders, or other payment issues. Secondly, it saves you from chasing people down to collect payments every month.
Everyone will give you tips about screening tenants, using a proper application, and other basics of being a landlord. These four moves, however, are what will set you up for success whether you have one rental property or ten.