Isn’t it great to become a landlord by only purchasing an investment property of your choice, sit back and enjoy at a sunny beach while the monthly rent payments heap up in your bank account? To be honest, it not as easy as it seems to be. A landlord has certain responsibilities and if not carried out properly, you wouldn’t be able to rent your property. But fortunately for you, we are here to help you to steer you in the right direction.
Before you rent out your property, you must evaluate the suitability of the property. If your property is a suburban area, it will mostly attract families or newly – married couples who are looking for the right house to start a family. On the other hand, if your property is located near a university or a college, it will be better suited to the students. Review the local newspapers or ask your lawyer to provide with the correct information about the value of rental prices in the neighborhood.
Screen Your Tenant Carefully:
One of the most important responsibilities of being a landlord is to run credits checks of the to-be tenants and receive references from the previous landlord. You must ask the previous landlord on if they have made the monthly rent payments on time and how they have treated the property. One essential point never finalizes anything without meeting face – to – face with the tenants. Always make sure that you meet the tenants and talk to them. Do not hesitate to ask any questions and also make sure that you have a copy of their ID.
Never Discriminate Your Tenants:
It is often seen that landlords cherry pick their tenants and also get away with it. Remember, that in most places it is illegal. So if you are caught, it might get really painful and expensive for you. Understand the laws in your area and abide by them.
Obtain an Insurance:
It is always better to receive a landlord insurance policy for your safety. This will cover any kind of public liability such as if your tenant falls from the roof or falls down the stairs, and decides to sue. You will not get into any kind of trouble. You can also opt for a rent guarantee insurance so that even if your tenant fails to pay the rent, the insurance will cover for it.
Get a Tenant Agreement:
It is absolutely important for you to have a written tenant agreement between you and the tenant. Ask your lawyer to make a written agreement. A written agreement will enable you to support your claims in case of any dispute between you and the tenant. The agreement should be very detailed and you can also add a clause according to your suitability.
Regularly Check in with your Tenants and Inspect the Property:
Visit the property once every two to three months and examine the property. Ask your tenants if they are facing any kind of trouble or disturbance in the property.