There’s a lot that goes into being a successful landlord. In addition to having the financial resources to purchase an investment property, you must possess managerial skills, have a keen attention for detail, and be willing to put in a great deal of sweat equity. Here, we’ve outlined valuable rental management tips and important steps you should take to help you become a savvy landlord.
Know Fair Housing Laws
Fair housing laws are perhaps the most critical thing for new landlords to understand and follow. While knowing them helps establish you as a reputable landlord, following them is required by law and failing to do so can result in serious consequences.
Landlords have a great deal of discretion in approving and denying potential renters based on their rental history, financial health, criminal history, and credit score. However, there are personal characteristics of applicants that you legally cannot factor in when determining their eligibility. These include mental or physical disability, familial status, marital status, age, sex, national origin, creed, color, and race.
Get Organized
A mistake many individuals make when becoming a landlord is not being organized from the start. By keeping proper records of expenses and revenue, you will be able to determine how profitable each of your investment properties are.
Establish a Pet Policy
Many rentals don’t allow pets. Finding a house or apartment that welcomes four-legged family members is often a relief to individuals who own pets. Keep in mind that allowing pets may help you attract more renters and even enable you to charge more rent in the form of pet fees.
While the additional rent is nice, you need to take potential risks into consideration before you establish your pet policy. While most pet owners are responsible and will maintain your property with care, pet wear and tear is inevitable and can leave you with stained carpets, scratched wood, pet odor, and damage to the yard or property grounds. In addition to charging a monthly pet fee, you should also ask for a pet deposit to supplement the standard security deposit. This not only helps protect you from unexpected costs, but it also encourages renters with pets to leave the property in good shape when they move out.
That being said, regardless of your pet policy, Fair Housing Laws require you to accept service dogs.
Know How To Properly Screen Tenants
Screening tenants before you hand over the keys to your property is non-negotiable. It’s important that your prospective renter provides proof of a steady job, a credit report, and references from previous landlords or employers. We recommend using a reputable screening service to obtain this information and ensure it hasn’t been fabricated by the renter. When you have all of the facts upfront about their rental history and criminal background, you’ll be equipped to make an informed decision about whether a renter is qualified or not.
Make Rent a Priority
Your revenue is the rent you receive from your tenants. Landlords can become too lax in pursuing on-time rent payments and instead just charge nominal late fees. There are definite benefits to working with good renters who may be experiencing unexpected financial difficulties, however, this shouldn’t become the norm. If they are reaching out and communicating with you to create a plan to get back on track, you have the opportunity to help them and keep reliable renters in your space. However, if a renter has stopped paying rent and is ignoring your texts and calls, you need to consider starting the eviction process. Luckily, if you’ve screened tenants properly, you will likely avoid these high-risk tenants who skip out on rent and lead to costly evictions.
Allow Tenants to Pay Rent Online
To help remove friction and ensure on-time payments, it’s essential to make paying rent as easy and painless as possible for your tenants. While you may prefer getting a rent check dropped in the mail, it’s a hassle for renters and can be a time-consuming ordeal for you. If a check is returned for non-sufficient funds, you will incur a fee and you’ll still have to chase down your tenant for their rent and fees. Finding an online payment processing platform will streamline the rent collection process for you and your tenant and eliminate the risk of bounced checks.
Invest in Renovations That Will Produce Higher Rent
While having a newly remodeled rental property can help set you apart from competitors, you need to be sure you can recover the renovation costs with rental income. Don’t go so far as to price your unit out of potential renters’ budgets, but make smart updates that will increase your property value while remaining attainable to renters. Appliances, light fixtures, countertops, and bathroom tile are all great areas to make improvements.
Market Your Rental Properties Effectively
So, how do you find a great tenant? While yard signs and newspaper ads still have a place, online listing sources benefit both you and potential tenants. Listing your unit online makes it possible for applicants to view photos of the property, review a description, and reach out to you directly to set up a tour. This type of marketing connects you to qualified renters who are serious about their search in half the time of traditional ads.
Looking to screen tenants, post listings, or collect rent? Use Zumper to get it done, all in one place!
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