Owning rental properties can be a lucrative venture. This is why many people opt for such investment vehicles and decide to be a landlord to make extra income. Unfortunately, although becoming a property manager can give you the financial freedom you’ve always dreamed of, it isn’t easy.
Before you start counting how much you can earn, there are various things to learn. Remember that signing on the dotted line and owning rental properties doesn’t guarantee you’ll be a success.
So, before you search for a property, here are the things you should know before becoming a landlord:
1. Prepare For Maintenance And Management
Property maintenance and management are part of the job of becoming a landlord. Not only will it keep the tenants happy and safe, but it’ll keep your rental property in good condition for future buyers or tenants as well.
Fortunately, you can make things easy by hiring a property management company. Check it out here and on other resources online to know how it can make a difference in managing rental properties. The best property management company can take responsibility for ongoing maintenance and daily repairs, upkeep, and security of your properties.
2. Learn How To Screen Tenants Properly
In terms of traditional rentals, learning how to screen tenants is crucial.
Proper tenant screening can help you determine the makings of an ideal renter. The best tenants are more likely to take care of your property, stay longer, and pay on time. It’ll also help you avoid eviction and lessen the costs that come with it.
When learning about tenant screening, find out the different types of tenants, and check their criminal record, credit rating, and eviction history. Before letting tenants sign the lease agreement, consider a face-to-face meeting.
3. Learn To Develop Rental Policies
As a landlord, you need to set policies for your rental agreement. Besides, you’ll have peace of mind if you develop your policies before any problem arises. This way, you can plan ahead for situations or scenarios that could arise during the rental agreement period too.
When developing a rental policy, consider adding late payments, rules on pets, and other non-payment regulations. And you may write a policy for repairs and maintenance of the property.
4. Be Familiar With Fair Housing Laws
First-time landlords must understand and follow fair housing laws. These laws prohibit discrimination against tenants based on various factors, including age, religion, race, national origin, gender, and familial status. Violating such laws may result in serious legal consequences for landlords.
Additionally, housing laws may vary from one region to another. If you don’t want to end up paying penalties and avoid inconvenience in the future, learn your area’s housing laws before you become a landlord.
5. Master Property Marketing
One of the primary roles of a landlord is marketing a rental property. If you’re new to being a landlord, putting an advertisement of your rental property on any listing service is just the start of your long journey. This is why you should learn how to master marketing.
Marketing rental properties doesn’t only revolve around putting ads online. In addition, it may include giving tours of your property and promoting it on various social media platforms.
6. Involve A Lawyer To Form Your Legal Document Agreement
Once you’re done writing your rental agreement and policies, it’s best to involve a lawyer in the process. A legal professional will help review your agreement to ensure nothing’s missing or requires clarification. It may also help you know more about the landlord’s rights.
So, if you don’t want to deal with headaches over time, consider hiring a lawyer to form your final agreement for your rental properties.
7. Expect To Work More Hours
Once you become a landlord, your working hours or days aren’t fixed. Besides, problems with rental properties may arise anytime. In fact, emergencies may happen at any hour, and you should be prepared to handle them carefully.
Your schedule may also change at any moment. For instance, if you’re set to inspect a minor issue, some of your tenants may start discussing other problems that need a quick fix. When it happens, you’ll need to spend extra time.
To be an outstanding property manager, you should be ready for such situations and practice better time management skills. Depending on your preferences, you can set your own working hours and let your tenants know only to contact you during major emergencies.
8. Expect A Learning Curve
Expect a learning curve regardless of how much time you’ve spent on researching rental properties and becoming a landlord. Yet the longer you do your work, the more likely you’ll recognize possible complications. Furthermore, you’ll learn the different warning signs of bad tenants and what possible circumstances breed disaster.
Conclusion
Becoming a landlord is challenging, but it can be rewarding when done right. Nonetheless, you must remember that it’s a long path that requires time, effort, and hard work. To become one of the most successful landlords in the market, never stop learning about rental properties and always expect the unexpected.
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