8 Helpful Tips For First Time Landlords
Property for rental income is a lucrative investment opportunity. While you retain ownership of the property, you can generate significant passive income through the rent.
But if you’re stepping into the landlord’s shoes for the first time, you may be confronted with complex decisions. It also takes considerable organizational skills to discharge the responsibilities of a landlord. With a few effective strategies and your determination, you’ll find that this business isn’t that daunting.
Here are the tips to help you sail through in your new role as a first time landlord.
1. Think like a business person
You may assume rental income as your passive income, but it makes more sense to operate your rental property like a business. You should adopt a practical approach and not let emotions influence your decisions. Establish a relation with your tenants that is reasonable and business-like.
Do not resort to any malpractice for making easy gains. This could harm your reputation as a landlord, as the word will get around.
2. Hire professional property managers
Managing the finer details of your rented property may prove to be too tedious for first time landlords. You can always take assistance from property management companies in Dubai to make life simpler. These professional service providers facilitate rent collection, tenant screening and micro manage the whole process on your behalf.
3. Know the legal and financial aspects
Understanding rental and tenancy laws is very important. Reach out for resources that provide comprehensive basic knowledge of these laws. You need to be aware of the licenses and inspections required. Also keep in mind the rules regarding accepting safety deposits. Being well informed regarding rules for eviction is indispensable for landlords.
Acquire basic financial management skills which will help you with rent collection and payments. Digital payments are highly recommended instead of cash or checks. Digital payments like direct debit allow you to maintain a proper financial trail and are more convenient than cash payments.
4. Screen your prospective tenant
Accepting tenants without a proper background check can be a terrible mistake. Landlords should always take keen interest in screening the tenants. Always enquire about their credit history and their financial status. Ask your tenant to furnish a recommendation from the previous landlord. These are some objective ways of screening tenants without being discriminatory.
5. Predetermine the rules for your tenants
The most practical way of managing a healthy tenant landlord relationship is to clearly communicate your expectations. You can set the house rules (keep them realistic) and get the tenant to agree to them. Incorporate these conditions in the legal contract with your tenant too. Make sure that you have clear rules regarding having pets at the property.
6. Get insured
An insurance policy can protect your interests as a landlord. Landlord insurance safeguards you from major financial loss due to damage to property. You can also get the tenant to take a renter’s insurance for his belongings on the property. The cost of insurance is quite affordable. Most tenants and landlords gladly bear this cost in view of the multitude benefits.
7. Always keep record of before and after photographs
A clever way to avoid disputes when your tenant moves out is to keep a record of photographs. With a comparison of before and after images, you can fix the tenant’s responsibility for repairs, if applicable.
8. Get creative with apartment staging
The property rental market has emerged as a highly competitive one. With a huge range of house properties on the offer, tenants have become rather picky. If you have been unable to generate much interest for your property, you should go the extra mile. Find ways to make your property attractive to the renter. Apartment staging strategies work for rental property just as effectively as they do for properties on sale.