How to become a landlord? Here are the best new landlord tips you must know. Becoming a landlord is much more than purchasing a rental property and finding reliable tenants who can take care of your house while you’re making money. With that being said, the life of a landlord can be daunting and stressful, especially if the person in question doesn’t know how to fulfill their role.
It’s safe to say that rights and responsibility go hand in hand, and if you want to enjoy the benefits of receiving rental money at the end of each month, you’ll have to read how to be a good landlord and manage your business effectively. So, without further ado, let’s take a look at these ten new landlord tips you should know at the start of your landlord journey.
Top 10 New Landlord Tips
Treat your rental property as a business
Your rental money may not be your primary source of income, but renting a property still puts money into your wallet. If you want to continue to receive extra payments and keep your tenants happy, it’s necessary to handle your rental property as a business.
The easiest way to do that is by following your state’s laws and regulations. That way, you will avoid problems with the law and continue to operate your business legally.
In addition, your rental property is not your home. Although it’s easy to imagine yourself living in your new rental house, buying furniture and decorations that match your taste can do more harm than good. Therefore, it’s advisable to design with sophisticated neutrals and purchase furniture that can attract a wide range of tenants.
Understand your rights and responsibilities
As we mentioned before, complying with local and state laws is essential for your business, which is why it’s worth noting there are many laws and regulations in Australia that can protect you as well as your tenants. Ensure to inform yourself and understand your rights and responsibilities before allowing your tenants to move into their new house.
For example, while it’s understandable why many landlords want to visit and inspect their properties without notice, you will have to pay a fine if you enter your tenant’s home uninvited.
When it comes to responsibilities, you’ll have to install smoke detectors, invest in property maintenance and inform your tenants about any contract modifications before execution.
Set a reasonable rent price
If your rent money is the only source of income; you have to remember that you still need to come up with a rental amount that’s fair both to you and your tenant.
Another one of the new landlord tips is when trying to figure out how much you should charge for rent; consider the size of your property, location, and appearance.
Advertise your rental property
Most property management software programs and real estate apps will automatically advertise your rental property. Still, you can list your rental on individual websites or social media platforms like Facebook or Instagram. Be sure to take good-quality photos of your rental property and include a property description in your ad.
In addition, you should set specific rules for tenants to follow so that they know what to expect when they move into their new home. For example, if you don’t want pets on your rental property, be sure to inform tenants about your decision.
Sign a tenancy agreement
By signing a tenancy agreement, you will reduce the risk of potential problems and disputes with your tenants.
In addition, a legally binding agreement will protect your legal rights and ensure both parties understand what to expect from one another.
If your tenants destroy your property or refuse to leave after the contract ends, you have the right to inform authorities and find a way to deal with these issues the right way.
For example, if the tenants are not allowed to have pets or are not fulfilling their end of the agreement, you will be able to break the contract or refuse to pay for the property damage.
Treat your tenants well
If you treat your tenants properly, they are more likely to take better care of your property.
So, although it’s necessary to inspect your rentals and have an open conversation about what’s allowed on your property; you should also learn how to respect tenant privacy and be forgiving; when they’re dealing with emergencies that may affect the rent payment.
Don’t be friends with your tenants
We mentioned earlier that you need to treat your tenants well. However, it’s advisable not to befriend them. Although the thought of being the “cool landlord” can inspire you to provide more for your tenants. Some people will take advantage of your generosity and find a way to avoid paying rent.
To prevent such from happening, keep in mind that business and friendship don’t mix. You can choose to be forgiving from time to time and help tenants take good care of your property. But once you notice that they’re acting suspicious, try to establish professional work boundaries.
Set expectations on when rent is due
Setting expectations on when rent is due is as important as signing a rental agreement. If you want to protect your interest, you can include your expectations in your rental agreement. That way, you will be able to request payments on predetermined dates.
Be sure to talk to your new tenants first to learn more about their pay periods. Since the rent is due for the entire lease term, in equal payments, choose which option you prefer; and determine whether your tenants agree with your offer on the first or last day of each month.
Hire a strata manager
In simple terms, strata properties refer to multiple buildings divided into individual apartments or houses. If you’re a strata property owner, that means you can provide multiple housing options for new tenants on your property. Luckily for you, strata managers can help you take good care of your property and tenants.
Strata management services provided by a strata managing agent include rent collection, property maintenance, asset and insurance risk management, and accounting.
In addition, strata managers will establish a connection with all tenants who live in your strata property. Also, ensure that all tenants follow the rules and regulations listed in your contract.
Conduct rental property inspections
Renting a property can be risky because, in most cases, you don’t know who’s going to move into your house. In addition, many landlords have to deal with terrible tenants who refuse to pay the rest. Or clean their living space. Although you may never have to deal with these issues. So, it’s advisable to conduct rental property examinations at least a few times a year.
By conducting property inspections, you’ll be able to determine whether your tenants know how to take care of your property. In addition, inspect your property for any signs of damage so that you can invest in renovation and avoid costly reparations in the future.
Also Read: Buying The Right Home At The Right Price
Conclusion – New landlord tips
These are must-know new landlord tips. You’ll become a good landlord who knows how to treat their tenants with respect by following these ten rules. But, more importantly, you’ll learn how to grow your rental property business and find tenants who can comply with your requests and respect the general terms of your agreements.
If there are multiple tenants on your property and you don’t know how to handle the paperwork or new responsibilities; hiring a strata manager who will take care of your tenants and property will save you a lot of time plus money. But, be sure to consider this option if you want to stay focused on your primary source of income; or clear your tight schedule.
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Author bio: Gabriel Hill is an Australian blogger interested in various spheres from home improvement, health management and environment.