The rental market is booming thanks to millennial renters and baby boomers who want to escape the hassle of home ownership. Whether you’re investing in property as a source of income or as a means to fund your retirement, there are certain things that every landlord should know. This article includes tips on choosing the right rental property location, renting to the right type of tenant and more.
1. Treat your rentals like a business.
As a landlord, you must treat your properties like the investments they are. This means conducting regular inspections, keeping accurate records and screening tenants thoroughly. It also means being prepared for worst-case scenarios, such as having an emergency fund set aside for repairs and vacancies.
2. Be prepared to deal with legal issues.
Landlords face a lot of legal issues, from security deposits to evictions and liability. It’s best to avoid legal issues by putting everything in writing, performing thorough background checks, educating yourself on local landlord-tenant laws and ensuring your property is maintained and safe.
3. Have a plan for maintenance.
If you’re not going to be available for your property, have a contractor in place to perform routine repairs and maintenance. This will keep your tenants happy and prevent any unexpected problems. If you’re not familiar with the plumbing, electrical or heating systems, make sure to hire a professional who can ensure they’re safe for tenants before you start renting out your property. For advice from Letting Agents Cheltenham, visit Me and You Estate Agents
4. Price your rental property correctly.
Before you put your property on the market, decide how much to charge in rent and what your rental will include, if anything, such as utilities, furnishings or parking spaces. If you’re unsure how to price your rental, ask nearby landlords for advice and check out what comparable rentals are charging in the area.
- Make it easy for your tenants to contact you.
Tenants will appreciate that you provide them with the necessary information and documentation in an organised fashion so they can reach out to you easily. For example, sending out welcome letters with information about the property and how to pay rent online makes it easy for them to get started.
6. Establish a good relationship with your tenants.
Creating a great rapport with your tenants will help you manage conflict resolution and maintenance requests effectively, which will ultimately benefit your rental business. Make sure you take the time to meet with your tenants in person, respond to emails quickly and be transparent when dealing with renters.
What a letting agent can take off your hands
Many new landlords weigh up whether to manage a property themselves or hand it to a letting agent. Agents offer different levels of service, and using one can make the role much less stressful.
An agent deals with tenants for you, from introductions to late payments and, if it comes to it, evictions. They vet prospective tenants fully with credit checks, references and employment history, which reduces the risk of problems later. Maintenance becomes easier too, because the agent takes details of any issue and arranges the work, so you are not fitting visits around your own job.
Agents know the local market and can advise on realistic rent and how to get the most from your property. They make sure you meet your legal obligations, including Gas Safe certification, smoke and carbon monoxide alarms and identity checks. They also handle advertising and move-ins, which keeps the time a property sits empty to a minimum and protects your rental income. That applies whether you own one property or a portfolio.
Tasks a property manager can take on
Many landlords hand day-to-day work to a property manager, so it helps to know what one does. Managers use their knowledge of the local market to set a rent that attracts tenants, collect payments, apply late fees and review the rent each year. They advertise the property, carry out credit and background checks, set the lease length and terms, and decide the size of the security deposit.
During a tenancy, they deal with noise complaints and maintenance requests, keep the property safe and habitable, and organise routine maintenance and emergency repairs through trusted electricians, carpenters and plumbers. When a tenant leaves, they decide how much of the deposit is returned, clean the property and repair any damage. If a lease is breached, they may handle an eviction.
A good manager understands landlord and tenant law, from finding tenants to deposits, ending leases and safety standards. They can also supervise other staff, look after vacant properties to prevent vandalism, stay within the agreed budget and keep thorough records of the property, its tenants and its upkeep.