Education and news for smart DIY landlords!
John is the typical landlord who lives in the same building as his tenants. His office is a corner at home with a desk full of contracts, policies, and overdue bills. John handles disputes among tenants and is the go-to handyman in the building. With everything he has to do, John doesn't even have time for a date.
If you're like John, you thought this would be easy. Rent a building, renovate, or construct, and you're on your way to collect monthly payments. So you thought. How do you get things done as a landlord and still have a life? In today's post, we show you how.
Start off on the right foot by choosing to rent to good tenants only. The fewer problems you have with tenants, the more time you save.
You need tenants who can pay in full every month, has a good rental background, and no criminal history. Be sure to ask for a rental application and run a credit and background check. Consider renters' insurance as one of your requirements to avoid damage lawsuits.
Productive landlords have a system in place to help them manage their rentals. Opt for a system with built-in features like:
If you don't want to pay for property management software, then you best keep digital records. Scan receipts as well as records of communication. These should be essential in case of legal disputes.
If you wish to expand your rental business, know that you cannot do it alone. The more tenants you handle, the more issues will arise. A property manager will free up time for you to focus on expansion. For some landlords, this becomes there 9 to 5 job. Unless you want this for yourself, you may want to pay someone to handle the day-to-day tasks. Property managers have the expertise and time to handle various duties.
Another option for landlords is to delegate routine tasks. Consider outsourcing time-consuming tasks that need a lot of attention. Don't be afraid to contact a local repairman and hire an accountant too. Have someone manage your social media page and take those late-night calls.
It can be difficult to set office hours when you live in the same building. Still, even if you live elsewhere, you may still have phone calls running round the clock. When you have set office hours (including time for phone calls), your tenants will know when to bother you.
Online rent payments are not only convenient but also ensure you get paid on time every month. Tenants can schedule automatic deductions from their account monthly. This also provides digital records for the tenant and the landlord. Online payments are also more secure than sending a check in the mail.
Do you find yourself dealing with midnight brawlings among your tenants? Include a clause in the rental agreement that lets the tenants deal with their problems. This will lessen arguments and one-sided resolutions.
You may also give tenants the responsibility of paying utilities. When you have the utilities in their name, it saves you time and can secure long-term tenants for you. At the same time, should they run off without paying, the utility company will run after them.
Do you want to go from tired and overworked landlord to a relaxed property owner? Dreaming of expanding your rental business and collecting payments sans all the fuss?
You can do that when you use the right software, delegate, and hire the right people. You can also enable tenants to do more for you and turn less to you for all sorts of matters. When you do all these, you may finally get that date or vacation you deserve.
If you’re ready, make Landlord Prep your go-to resource for landlording education. Here, we offer a complete DIY landlording course to get you on the right track. Join our academy today. If you want, you can check out Flavia’s real estate investing webinar first!