Landlording: Beginner’s Guide to Becoming a Landlord
This article is exclusively designed for those that want to become landlords in the near future, or who are first time landlords. Real estate is an interesting business you can get involved with any day any time.
If you have plans to become a landlord or if you just bought land, and wants to build it to let, then it is appropriate that you do some research so that you will be able to understand how it works, and the things involved.
Here are top landlord tips you need to know:
(1) Partner with the right investor
If you are looking for real estate partnership, please take time to look for people that are completely transparent and honest. These two qualities are absolutely needed.
Over the years, most landlords have the mistake of partnering with people they barely know, simply because they are entering a good-looking deal.
Try as much as you can to avoid this mistake.
Choose someone that has the same values and end-goals with you – this is ultimately what will make the difference.
(2) Understand being a landlord is a business
Although, investing in real estate is a long-term investment that will yield multiple dividends. You will make money, you will be required to pay taxes, and will incur some expenses especially on maintenance culture. However, if you do it well, you will see that it is a profitable business.
Just like every other business, understand that if you have no plans of investing or making your house to look good, then you may not get patronage, and you will be losing a fortune. Thus, buying or building a house is one thing; maintaining it periodically so that it can look great is the real deal.
(3) Preparing the property
This is the time to show the stuff your property is made of: You need to make up your mind whether to rent a furnished or unfurnished property.
Decide the one you want and go for it. Also, try to know the things potential tenants will need you to provide for them. What tenants needs varies from one location to another.
Whether your property is furnished or unfurnished, there are essential things you must do such as keeping your property clutter free, using neutral colors, let the property be clean and spacious. If the property doesn’t already have all these done before marketing, then try as much as possible to get it done.
Make the place to be smelling really fresh, but don’t overdo it, because if you do it, people will think you are trying to impress them, and this can be a turn off to some people.
(4) Finding & referencing tenants
Finding the right tenants will save you a lot of stress, while renting your property to lousy tenants can lead to headaches and bigger expenses. Thus, when you are done short-listing your prospective tenants, you should do a comprehensive tenant referencing such as verifying references and credit checks.
This is necessary whether you use realtors to find your tenants or not. It is also important to know that nobody will care about your property more than yourself. So, when it comes to picking a tenant for your property, it is good you do it yourself.
(5) Collect rent online
Collecting rent online is one of the safest and coolest ways landlords can use. If your main method of collecting rent is online, then you can select another mode of payment for those that don’t have access to the online platform.
Nevertheless, experts say that collecting rent online remains the best. There are multiple online sites that provide online payment options for landlords. All you need to do is get some research going and select the ones that will suit your needs. Obviously, keep in mind that prices will vary depending on your preferred plan.
(6) Market rental properties effectively
It is not easy to market properties. To most people, this could be infuriating, fruitless, tedious, emotional and tired at times.
To market your properties effectively, you can leverage on these tips: let your tenants enjoy something extra, and they will be happy to adjust their payment upwards. The something extra could be providing the internet service.
Know who your ideal tenants are. Is your property suitable for students, single couples or families? And then provide services that will perfectly appeal to them.
Another option is deciding whether to rent a furnished or unfurnished unit to your tenants. Keep in mind that not all tenants like a fully furnished house. But for students, divorcees, a couple searching for a ready-to-move house, and those from overseas, a fully furnished house might be ideal for them.
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About the author: Perfect Agent understands just how important it is to have a committed and experienced real estate agent in the process of selling or renting a property. It helps customers find, compare and choose a real estate agent to sell or rent their property. Also offer the best service in the real estate industry by connecting customers with top performing real estate agents.