Rental property owners earn nearly 45% more income than the median household in the U.S. If you’ve decided to become a landlord and invest in rental properties you’ve made a smart decision — if you do it right.
If you’re aiming for your investment to be prosperous rather than a catastrophe, then you’ve come to the right place.
Check out these four essential tips for landlords to succeed in the rental property market.
1. Vet Prospective Tenants
This is the best piece of landlord advice that is often overlooked in favor of filling a rental property quickly. Before you even start looking for tenants, decide on specific and non-negotiable criteria. Once you have that list, don’t be tempted to stray from it.
The most important criteria to consider are employment history, proof of income, references, and a credit check. Bad tenants may end up costing you a lot of money and stress, so don’t go half in on the vetting process.
2. Ensure a Well-Written Lease
As a new landlord, one of the first and most important steps you can take is to draft a thorough lease agreement. This will serve as the foundation for all your future dealings in rental real estate investing.
Make sure that absolutely everything is covered in the lease. Seek advice from a lawyer and the expertise of real estate agents to make sure you have all your bases covered. It will surprise you the number of unexpected issues that arise as a landlord — ensure your lease protects you.
3. Increase Rental According to Market Rent
When you first become a landlord you may have grand ideas of upping the rent whenever the need arises for the amount of your choosing. Just because you can increase rent doesn’t mean you should and you’re likely to lose tenants if the amount is exorbitant.
Stick to increasing rent annually according to the local market. For more information about raising rent, visit Property Insurance HQ.
4. Treat Your Rental Property Like a Business
Your rental property is your business and you are a professional — this is one of the most important investing tips to keep in mind. This means maintaining a professional relationship with tenants and being smart about managing renal income.
It’s also vital that you ensure compliance with federal, state, and local laws in order to protect your ‘business’. Additionally, protect yourself with landlords insurance for unexpected events.
The Road to Success With These Tips for Landlords
Now that you’re armed with the most essential tips for landlords, you’re ready to start vetting tenants and filling your properties. Remember that while being a landlord may not be your primary job, you should certainly treat it like a business.
There’s still so much to learn about real estate as a new landlord. Luckily, our site is packed with informative and interesting content to help you get there — keep exploring for more articles.