March 30th, 2021 | Updated on June 27th, 2022
Being a landlord can seem daunting, especially when you’re just starting out. Navigating the minutiae of a rental application, collecting rent checks and property maintenance can sometimes become tedious tasks. Thankfully, we have accumulated five useful tips to aid you in being an efficient landlord.
1. Find Good Tenants
Running a successful investment property portfolio is heavily determined by one’s ability to find reliable, financially stable tenants that are interested in your properties.
Rental applications are an efficient method used by property management companies and landlords to obtain information on potential tenants.
The information obtained through rental applications includes personal information, rental history, and employment records.
Through past rental references and credit history, landlords have access to the necessary information to determine reliability, risk factors, and creditworthiness.
2. Do A Full Tenant Screening
Tenant screenings, also known as tenant vetting, are essentially a more in-depth process than regular rental applications.
Tenant screening aims to identify high-risk tenants that are likely to cause damage to property or have delayed rent payments in the past. The screening will look into a potential renters’ eviction history, criminal records, proof of income, credit history and an interview.
3. Consider Hiring A Property Manager
If you happen to be a landlord managing several properties having a property manager by your side is a great asset that can relieve a landlord of certain duties.
Property managers have experience with everything from property maintenance to handling tenant disputes, managing rental payments and sourcing new tenants when the property is vacant.
Furthermore, having a property manager helps to maintain a professional working relationship between the landlord and tenant. Having a “middleman” can help you avoid any uncomfortable conversations.
Moreover, these professionals will be knowledgeable about the important aspects of property law and should know how to best handle problems as and when they arise.
4. Get Your Rental Price Right
Rental prices are influenced by a number of factors. Simple supply and demand are important factors.
You’ll also need a good idea of the type of tenant you’d hope to get for your property. Location is another key factor when it comes to determining price.
The safer an area and the more affluent it is, the more likely you’ll be able to command a higher rent. The availability of good transport links will also have a significant impact in making a property more desirable.
A good way to set a reasonable rental price is to compare it to similar properties in the locality.
It is important to offer a fair rental if you want to attract the type of tenant that will remain in the property for longer. Remember, a high tenant turnover is not good for business.
5. Maintain Professionalism
A good landlord-tenant relationship is essentially no different from a business relationship. It is therefore important to treat your tenant as you would a client or customer at your workplace.
Maintain open lines of communication so you can understand the tenants’ needs. Build trust by always delivering on your obligations as set out in any rental agreement.
Becoming a landlord can be a financially lucrative venture, but it also requires a lot of hard work.
If you want to make a success of your investment property, then it is important to be aware of the realities of your role as a landlord.
Furthermore, understand that the experience will be a learning curve, and while these tips are a starting point, you’ll be learning on the job.