When considering to aquire a new property or lease out your current property, a prospective landlord should understand this is respinsbility upon themself. Setting goals and recongizing the market, along with learning the rules and regulations are crucial before even considering to have your property up for lease. Will you be hiring a management company? Will you be running the communicaiton direct to the tenant? Lease length & terms? These are all important, on the surface quesitons to ask yourself to assure you are making the best decisions possible.
- Searching For Tenants: You can find tenants by advertising your vacancy online. Potential tenants will contact you to arrange a time to see the property. The other alternative for finding tenants is to hire a real estate agemt/broker who will advertise the property for you & to assist on maximizing the exposure. A full-service management company will handle every step of the process and will consult you for major decisions. A real estate agent/broker is an option if you want someone else to find and screen tenants for you. A real estate broker typically charges one month’s rent for this service when assisting on renting & screening and are able to reccoend vendors if needed to upkeeep and geenral maintenance.
- Preparing Documentation (Lease & Applications) You want to make sure that you and teannt are protected within your lease. All terms that apply must be abided by, as this contract is bi-lateral. As mentioned above, understanding and learning the process beforehand will make this a lot easier. Keep in mind, you are able to draft a lease, & I always encourage having a legal professional advise on this, or your local rea estate agent can also assist with templated leases if needed.
- Screening Tenants: This is a very crucial steps, as you will prepare to understand and learn what type of qualfiicaitons you are in search for. Typically, employment history, credit score(s), landlrod references, can all play into factor when evaluating within the 'application process'.
- Collecting Rent: You’ll want to collect rent on time every month and enforce late fees to discourage late payments. Many landlords choose to collect rent online to avoid the hassle of collecting paper checks. The rent you receive must be reported on your taxes, it is always good to keep track and filings of your rental history.
- Handling Maintenance Requests & Servicing: While renting out your property, you will likely receive maintenance requests from your tenants from time to time. Making sure you respond within an ample timeframe, and can be accessible and/or have a service professional able to assist, this will go a long way and will keep a great reltionship between the landlord & tenant.
- Continued Education & Knoweldge: Continuing to learn and striving to be the best property manager/landlord that you can be, pays off exponentially. As you contunue to grow and acquire more investment properties, further educating will only be beneficial! Whether you decide to rent your home yourself or hire a professional to help, be sure you’re following local rental rules and regulations. Most major cities have a strict set of rules to protect tenants and landlords.