Advice for New Landlords
Starting out Strong Will Pay Off
If you’re new to the landlord business, you’ve probably done a whole lot of research about pricing, cash flow, and ROI. You know that being a landlord requires one to be tough, but fair, and to know a great deal about federal, local and state laws regarding renting and leasing to the public.
Here is some advice about owning rental property that you may not have heard, but that experienced landlords have already learned.
- Don’t underestimate the power of a good lease agreement. Consult an attorney to have yours reviewed if you’re in doubt about yours.
- Do not fail to conduct thorough tenant background screening on every applicant—including credit, criminal, and background—and you’ll avoid a wide range of problems.
- Remind yourself, daily if necessary, that this is a business. Most landlords are not renting to help people, but rather to make a profit.
- Anything tenants do that cuts into your profit needs to be dealt with immediately. This includes not paying rent on time. More than any other issue, allowing tenants to pay late leads to bigger problems.
- Get everything in writing. Start with a good application and background check disclosure. Follow up with an iron-clad lease, a move-in checklist signed by your tenant, and all subsequent communications between you and your tenant. Keep copies of everything in the tenant’s file.
- Let the tenant know that you are bound by the terms of the rental agreement, and that you have to apply them fairly to everyone. Repeat this often so they know you are serious about the landlord/tenant relationship.
- While it’s not practical for everyone, many landlords are in favor of hands-on property management. That way, you can control things better and keep an eye on your property.