5 Things Every Landlord Needs to Know
Many people find real estate investments to be a great use of their time and finances. It’s a type of passive income that’s relatively easy to manage if you get it right. But how can you be a landlord that reaps the benefits of renting out your space? Here are a few things that you should know:
Look into background checks
If you want to verify you’re renting to people you can trust, renter screening is important. Performing background checks on people that want to rent your home may not be something you would typically want to do, but it can help prevent serious issues in the future.
With renter screening in place, you’ll be able to discover details about individuals that could provide insight into whether or not they pay rent on time or perform criminal activities in your home.
Showcase your space
If you’re putting your home on the rental market for the first time, you may wonder what’s the best way to attract renters. There are plenty of options for “marketing” your home, whether through a website where you can post a description of your home or through working with a property manager that helps you find the best tenants around.
Check out various urban rental sites that make it easy for homeowners to find and attract tenants and quickly vet potential renters.
A lease agreement is very important
In some scenarios, it may be tempting to let someone you know rent without a rental agreement. However, this isn’t the best idea. It’s unfortunate, but there may be situations that come up where having a lease will protect you and your assets, so always make sure you have one ready for your tenant to sign when renting out your home.
Work with a lawyer to draw up a lease that can help you provide fair treatment to your tenant while keeping your property and investment safe.
Ask for renters’ insurance
Renters insurance should be required from the people you’re renting your home out to. It can help keep them safe and your investment secure. You don’t want to be responsible for covering any losses should your tenant get robbed or have other issues with their belongings in your rental property.
Most people will be more than happy to invest in renters’ insurance if it means that they’re taken care of should losses or damages occur during their time renting your space.
Treat it like a business
It can be easy to look at renting your space as a side hustle, which doesn’t require much of your time. However, your home and other types of real estate are valuable assets that can be beneficial in terms of income, so treat them like you would any other professional endeavor.
Make sure you have open communication with your tenants, and while being friendly, ensure your interactions are professional. Keep track of important to-dos in the home and consider using landlord software that makes it easy to collect rent. Should you have difficulty keeping up with everything along with your full-time career, consider hiring a property manager to help you manage the ins and outs of renting your property.
In Conclusion
Renting out your home can be one of the most lucrative things you decide to do, especially in a market that is growing. Whether you rent your home in Los Angeles or Austin, one thing is certain: make sure you’re aware of the best practices to protect your home and assets while renting to tenants that you’ll be able to trust. From background check platforms to payment processing software, there are several tools that can help you become a great landlord.
