Being a landlord is a great way to turn a steady profit by investing in property. However, there is also a lot of work required to make your venture into being a landlord as successful as it deserves to be.
By following these simple tips, you’ll protect yourself and your tenants from a negative experience, allowing you to enjoy your new status without worry.
Treat it like a business
You might not be going to work every day as a landlord, but you should still treat it like work. This means setting aside some profit for business costs and having systems in place for when you’re not available.
Schedule your lease end dates
Use lease targeting to make sure all your tenancy agreements end at times of the year when the market is providing the most prospective tenant traffic, such as the start of the academic year.
Screen your tenants
You don’t want a bad tenant in your property, so be sure to carry out thorough checks on anyone you’re considering.
Get a lawyer to review your lease
To ensure that everything you’ve outlined in your lease is completely by the book, have a lawyer look over it. They’ll be able to quickly spot any errors which need removing.
Keep your tenants happy
It’s much easier and more cost effective to hold onto existing tenants than it is to find new ones, so keep your property in tip top shape to ensure as little turnover as possible.
Reinforce good behaviour
Reward on-time or advanced rent payments and tenant referrals with clear gratitude to make sure you keep your tenants on side.
There is no such thing as a verbal agreement when it comes to renting out a property.
Have a late policy
On the other hand, make sure you have a policy in place for when tenants aren’t holding up their end of the bargain, like a late payment fee.
Carry out regular inspections
You should inspect your property fairly regularly, and make a note of how it is when tenants move in and move out.
Set office hours
Set yourself office hours or your tenants will end up setting them for you. You don’t want to be getting calls at 10 o’clock on a Saturday night unless it’s an emergency.
Do not discriminate
Be sure to follow the relevant laws when choosing tenants. It is illegal to discriminate based on race, colour, religion, national origin, sex, disability or familial status.
Ask professionals to help
As a landlord, you don’t need to be an expert in everything – you just need to know the relevant phone numbers. Don’t feel like you have to tackle repairs and plumbing yourself.
Get financial support
If you don’t have the funds to invest in a great property outright, seek help with a residential bridging loan from a trusted provider like Glenhawk. This will give you access to the money you need quickly.
Find the right rental charge
Set your rental rates in line with the current market, otherwise you’re less likely to find tenants willing to pay. Check the internet, watch the market and get an official valuation.
Have a business number
Especially if you have multiple rental properties, you don’t want to be handing out your personal number to everyone.
Set up electronic rent payments
Manual rental payments are a slog for tenants, and they’re more likely to forget to pay altogether. Make sure you set up the option for electronic standing orders.
Don’t make it personal
Being a landlord is strictly business. No matter how much (or how little) you like your tenants, that shouldn’t change the effectiveness of your role.
There are a few different kinds of insurance involved in renting a property, so do your research and get covered.
Make sure your lease is air tight
You don’t want a lease that’s full of loopholes for tenants to jump through. Read it through again and again, making sure that you’re setting all the right terms and conditions for your tenants.
Market your property effectively
To get your property seen, you’ll need to market it effectively. Explore all the different channels available and make sure your property is getting noticed.