Being a landlord for the first time can become pretty stressful, especially if you are not well-versed with the nuances of renting a property. Renting out an owned property is actually a very good way to generate income sitting at home. However, you have to be very smart in dealing with any dicey situation that might arise on the way. Being aware of the laws of renting is one of the requirements of a responsible landowner.
Despite all the precautions, you may sometimes end up leasing out your place to some miscreants who can make life hell for you. Non-payment of rent and damage to the property are two most commonly encountered problems in this particular scenario. You must be aware of some golden tactics that you should follow to manage your property in the best way possible.
Repairs and Maintenance
When you are renting out your property, you still own it. Therefore, you practically must ensure that there are enough amenities provided so that the tenant does not face any issues as such. The responsibility of repair and maintenance is mostly on you unless it is some damage incurred at the expense of the tenant itself. Only if your property has the basic facilities, the chances of it being rented out will be more, and you will not have to worry about being without rent.
Tenants issues
You must screen your tenants well before leasing your property to them. One big mistake that landlords do, at a beginner level, is that they do not check for the credit score and go by face and conversational value. A thorough background check is absolutely compulsory before signing the agreement papers. Issues like late payment of rent and subletting are some of the commonly seen tenant issues. If you feel something is not right, you should start the eviction process immediately, before you land up in a bigger soup.
Leasing issues
Certain places have certain laws for renting out property for different causes. For example, in some places, you cannot lease a private property as a hotel or homestay while in some places you can. It also depends on the location of your lease. Therefore, consult a lawyer or a real estate agent to get accurate information about your property, so that you don’t have leasing issues later.
Treat tenants with respect
Yes, you indeed own the property. However, that does not mean that you are entitled to levy any rule or not respect the privacy of your tenant based on your whims and fancies. They are paying rent for the place, so, legally speaking, they have the right to it as well. It is essential that you respect your tenants and not cross any boundaries unless it becomes absolutely necessary to do so. Even if you suspect something fishy and want to check, you are entitled to give a 24hour notice before you enter the property. You should not be too nosy and suspecting as well unless called upon to do so.
Property Management Agreement
Sometimes, you may not have the time or the resources of managing your property, and you may be outsourcing it to a property management company. You should have certain agreements with them to commemorate this business relationship. You can take the help of property management
Terms of Use- there should be specifications about what the property management companies are entitled to do. They are generally responsible for finding out the usual, customary rates in the area, the overhead charges, the tenants, and methods of making profits. They should be efficient in their job.
Rental property management fees and payments. – they should be responsible for collecting the payment from the tenant and providing other similar services at a moderate fee, which don’t burn a hole in your pocket.
Non-performance- you should have an agreement in place in case your property is not performing correctly so that they can report to you the reasons and the process of overcoming the rut.
Rent ready/make ready- in case there are any issues with the property which might not make it suitable for leasing, they should inform you, so that appropriate measures can be taken to make it rent ready.
Understand the eviction process
In case you are not happy with your tenants and feel that evicting them is the only way forward, you should not be caught unaware. You should be aware of the eviction process thoroughly beforehand, or the whole process might become pretty cumbersome for you. Subtleties, like not serving the notice personally and giving the tenant 30 days to answer questions about the charges levied against them, are a few of the things that you have to understand to execute the eviction process properly.
Property management reporting and payment
In case you have hired someone to manage and take care of your property, you should ask for the reports regularly and keep a thorough check on them. Any mistake in this aspect, especially with respect to the payment, can be disastrous as your income might be set back by quite a margin. Hire only the best, and you can get rid of a lot of headaches in the long run.
Now that you own a property and have decided to rent it out make sure you follow the tactics mentioned above to have a hassle-free dealing.
