Not everyone who buys a house does so so that they can be a landlord, but when you buy an investment property, you might consider letting it out so that others can use it. There’s nothing worse than an empty property because it can fall into disrepair. However, when you have someone else living in your second home, you need to make sure that you are the best landlord possible.
You are the person in charge of how you want your home managed and one of the best ways to be a landlord is to allow the local condominium management services to take it over. That way, all you have to do is collect a rent handed to you by the management company. It’s important not to ignore the fact that it takes time and education to be a successful landlord. It’s going to take some practice, some patience and the right people working with you to make sure that you are the best that you can be. Let’s take a look at five tips for being a successful landlord that are going to make a big difference!
- Always ask for – and check – references. If you are using a management company, this will be standard. However, if you are going it alone as a private landlord you should know that it’s vital that you have the references of those who are going to be living in your second home. You want people who will treat your house like it’s their own house, and it can also determine whether they haven’t looked after previous rentals that they have had. You need these checks so that you can feel sure that you are making the right decision about your tenant.
- Write a contract. You need to have everything in writing between you and your tenant. You can be the best mate of the person moving in, but if you don’t have a contract things can get very messy when they leave or something goes wrong. A verbal agreement isn’t enough and you need the protection for your home. You should have an agreement that all parties can understand and having a contract also makes you a more serious landlord, which is important!
- Hold interviews. You should hold interviews with your candidates and make sure that you are careful about the questions asked. You cannot judge someone based on a paper application; the right person is often about personality. Prescreen the candidate with credit and criminal checks and check they have a guaranteed income so that they can pay the rent without issue!
- Get landlord insurance. There are specific insurances that you can invest in to ensure that you are covered if something should go wrong. You want to know that you are going to be solvent if the tenants decide to ruin your house and you have to put it back together again!
- Know the law. As a landlord, you are beholden to the rules that come with having an investment property. You have to ensure that you are not violating those laws. Yes, it’s your name on the mortgage, but your tenants have rights!