Owning residential property means you need to cater to your building and the tenants residing inside. It’s a lot of responsibility and not a job anyone should take lightly. Purchasing property to rent out is a great investment and a brilliant way to earn some extra income. However, it is only successful if the owner adheres to all the basic guidelines. Check out these four standard rules all landlords should follow.
Manage the Security Deposit Responsibly
All property owners can require a security deposit for their buildings. Even if the deposit does not belong to the property owner, it is still their responsibility to manage and keep the deposit secure.
The deposit exists to help property owners if their tenant breaks their lease in some way. It’s not for them to spend on expenses concerning the building. Typically, landlords cannot spend that money whenever a tenant is late on their rent. The deposit will go to you once they prepare to move out.
If they always pay their rent and leave the property in good condition, property owners need to return the deposit. All states have specific laws regarding how you will secure, maintain, and return deposits from tenants.
Be Transparent
Tenants and landlords sign a contract with each other. When it comes to this documentation, there needs to be a specific level of transparency and trust. You need to be honest about the condition of the building so that the tenants know what kind of place they’re moving into.
Additionally, you need to inform the tenants who the owner of the property is and where they reside. Tenants need to know who their property owner is for legal reasons. If you hire a third party to manage the property, disclose this information.
Turn Over the Unit
As one tenant leaves and another prepares to enter, you need to turn the property over properly. The unit needs to be completely vacant, aside from the appliances that came with the unit. If the unit is not available for the tenant to move in on the agreed date, they can take legal action.
When turning the unit over, you’ll want to perform a thorough inspection before the new tenants move in. The unit needs to be relatively clean, with no signs of serious damage to the structure. Take pictures of the unit before they move in for your own records.
Maintain the Property
Of course, maintaining the unit is the biggest responsibility of a landlord. Tenants rely on their property owners to keep them in a safe and secure building. Schedule regular maintenance and inspection checks for the entire property.
The roof will need a yearly inspection, but other areas will depend on their service requirements. When a tenant relays an issue with the building or their specific unit, do not wait to handle the problem. Ignoring issues will result in more extensive and expensive damages to your property.
Following these four standard rules for landlords keeps your buildings secure and your tenants safe, and it helps you avoid legal issues.