Education and news for smart DIY landlords!
Renting out a property entails a lot of commitment. Sure, becoming a landlord is a profitable venture but that also means making huge decisions. Before you rent out, here is a list of several things you need to do:
Since you basically will be running a business, it makes sense to protect it by getting insurance. Depending on your unique situation or the number of properties that you own, you need an insurance policy that covers malicious damage, theft, plumbing and heating problems, roofing problems, earthquake, accidental damage, and more.
When you are trying to determine the right rental price for your property, one of the things that should be done is to look at the similar rentals in the area (aka "your competition"). You can do that by checking online ads or paying the properties an actual visit and asking the landlord. Be sure to consider factors such as the square footage, amenities, and floor level. Remember that the rent price can be adjusted from time to time according to the demand.
Placing a "For Rent" sign and waiting for calls are not enough. A lot of people nowadays look for a place to stay using online methods. They may also ask their friends, relatives, or colleagues for recommendations. Great marketing strategies you can try include posting your rental property on free property listing websites, leveraging online and offline newspaper ads, or handing out flyers.
You already know how crucial it is to let the right people in your rental. Now is the time to decide who your ideal tenant is by creating a list of standards. Remember that these standards should be legal standards, not things you make up out of your own preferences. Also, set the same standards for everyone.
Examples include a sufficient income level, no history of evictions, has a history of paying rent on time, and has no history of lease violations.
A lease in an essential document that serves as a contract between you and a tenant. Creating a written lease ensures clarity and certainty regarding you and your tenant's obligations. Because each state has different laws for property management and tenants, know the laws of your state prior to drafting the lease agreement.
Basic aspects you'll want the lease to cover include maintenance and repairs, landlord entry, pets, trash, noise and nuisance, amount of rent and security deposit, and activity restrictions.
There are other several steps you can take before renting out your property. The things we discussed today will help you start off on the right foot. If you need more tips for do-it-yourself landlording success, check out the Landlord Prep Blog.
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!