How to Be a Better Landlord
Rental properties are one of the best ways to earn passive income and build wealth, but “passive” is a little misleading, since managing it can still be a substantial amount of work. There are three things you can do to mitigate your risk when managing your own rental property.
1. Treat it Like a Business
Successful businesses have plans, policy, and procedures to keep it running smoothly, and the same must be true when renting and managing your properties. You need to commit to customer service, outsourcing where needed, and watching your income and expenses. You can not assume you’ll collect a check monthly and everything else will be ‘ok’.
2. Thoroughly Investigate Tenants
Showing your home, interviewing prospective tenants, gathering application and back up, checking credit and criminal background, means lots of work up front, but it will be worth it in the long run. Choosing the right renters may mean years without incidents such as late payments, legal issues, and property damage. Choosing the wrong tenant could lead to many calls, visits to collect late rent, property damage and repairs, eviction processes, court, and way too much stress.
3. Make sure Your Lease is Bullet Proof
Lease agreement laws vary from state to state and can change frequently, so don’t take a short cut on an internet lease, or writing your own. Find an attorney who specializes in leases, or hire a Real Estate professional to market the home and handle the paperwork. You will be glad you were careful if you ever have legal issues with a tenant.
Need some Help?
We would be happy to manage your property for you. For more information, please check our Property Management page, or give us a call @ 480-748-4079.