Becoming a landlord is a potentially lucrative career move. However, being a successful landlord isn’t a given, and you’ll have your work cut out for you. With these tips, you can create the foundation upon which to build a successful career as a renter.
Utilities
One of the most important bullet points renters look for is whether or not utilities are included in the cost of rent, and landlords likewise have to contend with the utilities of their rentals. Providing utilities like water and electricity to your tenants is an essential part of being a landlord, even when it’s not included with rent. This is because the property will need to be set up with a multifamily utility company, and that will mean making an arrangement with the company in question and hiring contractors to make the necessary renovations.
Maintenance
Once you’re actually renting to tenants, your role as landlord will take the form of collecting money from everyone once a month and maintaining the property. Generally speaking, landlords will take responsibility for certain problems with the utilities and other permanent fixtures around the property. On the other hand, within this arrangement is a caveat that renters are typically held responsible for excessive damage or damage that seems to be a result of negligence, rather than an inevitability. By charging your tenants a security deposit, you give yourself an out if the tenant in question leaves the place worse than they found it. It’s not uncommon for landlords to hire maintenance personnel in order to take some of the burden off of themselves. In addition to this, however, you can bring in a professional to ensure that everything is kept in working order more consistently to begin with.
Legal Restrictions
It’s important to note that there are several laws on the books regarding the sometimes tenuous relationship between landlords and their tenants and that failing to uphold these laws can spell trouble sooner or later. Generally speaking, these laws are made to give tenants certain protections. For example, a tenant can’t be evicted without notification 30 days prior, and violating this rule can see you in legal hot water without a leg to stand on. On the other hand, it’s entirely plausible to get into trouble without even realizing it. While you might own the property, you can’t let yourself into your tenants’ apartments without notification up to 2 days prior or in an emergency situation. While you need to be let in periodically to check on things, doing so almost always requires the consent of the renter.
E-commerce
One of the most important issues facing most commercial endeavors is the need to embrace e-commerce functionality. While the term is most often associated with online retail, many different business models can implement e-commerce to great success. For example, allowing your tenants to pay rent online, you make the process simpler and easier, ensuring that you get paid on time more consistently. This can also make it simpler for both parties to keep track of the financial ramifications of the transaction. Understanding your clientele is an essential part of succeeding in any field, and your tenants might have financial struggles to worry about. In these cases, making the process more user friendly, you can help them maintain stability, making it easier for them to afford rent consistently.
Screening
An important part of protecting yourself as a landlord is to choose your tenants wisely. You’ll want to meet every tenant in person multiple times before renting to them, for example, and this can be accomplished fairly organically within the application process. Having tenants submit to a background check can give you further peace of mind, although this process is more time consuming that is conducive to the rental application process.
Being a landlord is a great way to make money, but it’s only a dream job if you set yourself up with a strong foundation. These tips can help you master the art of rental properties.
