By Teo Zhenjie
Becoming a landlord can be highly rewarding and exciting but first you must know the right steps to make. Find out what you will need to become a successful rental owner property right now.
1. Advertise and Attract New Tenants to Your Rental Property
If you are just becoming a landlord and starting out with a vacant rental property, the first important thing is to find a tenant for it as soon as possible. Every day that your rental property goes without a tenant, you will be losing valuable rental income.
Effective and proven methods of netting new tenants include advertising in the local newspapers, putting up drive-by signs, word of market recommendations and hiring an experienced real estate agent to do it for you.
2. Screen All Your Potential Tenant Applicants Carefully
Every experienced landlord and property manager will agree that picking the right tenant for your property is vital if you want to avoid a world of trouble later on. What you will need are people who are able to pay you rent on time and stick to the terms of your rental agreement.
Firstly you should interview your tenant over the phone and have him fill up an application form so you can learn more about him. For those who make it past your first round, it’s time to meet up so that you can show them around your rental property and observe them more closely.
It’s also highly recommended that you run a credit check on someone before inking the rental property with him. His credit report will reveal whether he is likely to be a reliable rent-paying tenant.
3. Manage Your Tenants and Handle Any Problems and Disputes
Collecting rent from tenants is perhaps the most enjoyable part of being a landlord but you will have to arrange a convenient and effective way of collecting it. While cash and checks are the traditional and popular methods for collecting rent, nowadays you can also accept your rent online by PayPal.
Common and painful problems faced by landlords include late rent payments, property damages caused by neglect or abuse, conflicts with neighbours and illegal activities carried out on your rental property.
4. Repair and Maintain Your Rental Property in Habitable Condition
Becoming a landlord having to maintain your rental property in a livable condition according to the local health and safety standards. This means that learning to make simple repairs by yourself or knowing how to hire a reliable repairman to do it for you.
It’s also important to know whether you or your tenant will be the one footing the repair bills. Never be misled into thinking that the landlord has to pay for everything. If the damage is caused by your tenant’s neglect or abuse, he will be one forking out money. On the other hand, you will responsible for damages due to daily wear and tear.
5. Ending Your Lease Agreement and Evicting Tenants if Needed
Depending on your area’s real estate laws and the type of tenancy that you have, ending your lease correctly is important for staying out of any potential disputes. You will generally have to give your tenant a written notice in advance if you want them out of your rental property.
Eviction is a nightmare that you will want to avoid when becoming a landlord but sometimes it’s the only way out. The most common and valid reasons for evicting tenants include non-payment of rent and repeated breaching of rental agreement terms.
Teo Zhenjie has been showing landlords how to manage their tenants and rental property effectively on Propertydo - To learn more important tips on becoming a landlord, visit his website today for step-by-step real estate guides, free resources and forms.