Landlords Seek to Avoid Risk
Five Easy-to-Implement Tips
Running a rental property business is like any other: there are certain risks involved, as well as rewards for taking those risks. The reward is usually a financial one, although for the past year or so, many landlords have experienced a decline in that area. Still, for the long term, it’s best to minimize your risk of loss to maximize your profit.
1. Avoid lawsuits: learn the federal, state, and local tenants' rights laws that apply to your properties. The Fair Housing Act, Americans with Disabilities Act, and your local statutes are not difficulty to comply with. Knowing their requirements will keep you from violating your tenants' rights—even inadvertently. The onus is on you.
2. Make your property safe: periodic inspections of the buildings and grounds you own are very important. Be on the lookout for tripping hazards on sidewalks, stairs, and common areas. Keep orange traffic cones and yellow hazard tape in your landlord toolbox to block off hazards in driveways, parking lots, and areas of ingress and egress. Keep trees trimmed to prevent injuries or fallen branches.
3. Be sure your property is habitable: plumbing, heat and electrical systems must work properly and safely. Don’t make your tenants suffer with broken pipes, insufficient electrical power, or faulty wiring. Install and test carbon monoxide and smoke detectors, and provide tenants with fire extinguishers. Substandard safety can lead to tragic endings.
4. Help keep tenants safe: installing good locks and adequate lighting can go a long way to preventing crime. Conducting proper background screening on potential tenants can help keep criminals out of your properties.
5. Be consistent: apply the same screening procedures and rules of conduct to every single tenant. When you bend the rules for one tenant, you are at risk for a lawsuit filed by another tenant. Treat everyone fairly and your risk declines.