Renting out real estate can provide a steady income and open the path to financial security. However, getting there takes time and dedication. Most people think that once they’ve bought a property, the hardest part is over. In reality, being a landlord is a lot like a regular job and requires serious commitment if you want to be successful. You need to take responsibility for repairs and maintenance of the property and handle complaints from the tenants. To get you started on the right path, here are the 5 best tips to keep in mind if you want to be a successful landlord.
As with any new venture, proper preparation goes a long way towards achieving your goals. Before you rent out your first property, take some time to educate yourself about all the challenges that you might face as a future landlord. A lot of things that you need to know are specific to the particular area where your property is located. It’s important to stay informed about the specific market conditions of your property, as well as local trends. A really good way to study the best practices is by attending investment property seminars. These kinds of in-depth courses provide knowledge which ultimately separates decent landlords from true professionals who maximize their profit.
Find the right tenants
Finding people that are trustworthy enough to let them stay and use your property is not an easy task. If your property is popular, you will have a lot of potential tenants lining up, but not all of them will be a good fit. Keep in mind that you are essentially entrusting them to take care of your property. Take your time to get to know your potential tenants. The first part is having an in-depth discussion with them and figuring out what their lifestyle is and if that is something that you want in your home. Besides the basic conversation, detailed background checks such as employment and rental history are also recommended in order to get the full picture. Even if people are friendly, you still need to make sure they can actually afford to pay rent.
Put up a detailed advertisement
Modern technology offers a lot of ways to advertise to potential clients and get their attention. It’s important to use all the available tools in order to get noticed and have a broader option of available tenants to choose from. Taking this step seriously will help you get an edge over your competitors as well. When it comes to advertisement, the first thing to keep in mind is visibility. The more people get to see an online presentation of your property, the more will eventually want to come and visit it. Not all sites have the same number of visitors; figure out which sites are the most popular in your area. Your advertisement should have as much information as possible, as well as pictures of all the rooms from different angles. The more information you provide online, the fewer surprises you will have when people eventually come to visit your property.
Figure out the right rent
Two main factors that determine the price of your property are size and location. Figuring out the right price is never easy, even professionals sometimes have a hard time with it. You don’t want to put the rent too low and miss out on potential profit, but if it’s too high, you might not find interested tenants for a long time. The best advice is to follow the market signs as they will be the best indicators. If your advertisement is not attracting enough people, then your price is probably too high. On the other hand, if you have a lot of interested parties on a daily basis, then you can probably afford to raise the price.
Get professional help
Hiring a professional real estate agent is not cheap, but it’s well worth the price. If you are just starting out as a landlord, chances are you are not very familiar with contacts and all the laws regarding real estate. Professionals will make your life easier as you won’t have to spend hours reading and interpreting all the various laws and regulations. It will also give you a sense of security, knowing that you did everything by the book and are safe from possible conflicts in the future.
As a future landlord, you will face certain difficulties and might make some mistakes along the way. But as long as you keep these tips in mind, you should be able to learn the basics and become a successful landlord in no time.
By Mike Johnston