Tips for New Landlords
Being a landlord can be challenging, but it can also be very rewarding. You can self-manage your rentals or outsource it and be hands-off. Either way, doing it right and doing it well can save you money, heartache, and probably legal fees. It will also attract quality tenants, who will take care of your asset.
No matter what strategy you pursue as a landlord, here are a few things you should do no matter what.
How to Be a Good Landlord
1. Treat your business like a business—always.
Open business bank accounts, keep track of your receipts, cut unnecessary expenses. Legitimize and protect your asset with appropriate entities and insurance.
2. Build quality, lasting systems.
This is the next step to treating your business like a business. Build systems to do recurring things routinely. That way, you'll be able to respond to issues that come up with your tenants or issues that come up with the property.
3. Know the laws.
Make sure that you’re using all the right leases and documentation based on the requirements of your state. Hold deposits in the right type of bank account.
4. Take care of your tenants.
Your tenants may come into hard times or may experience financial or personal difficulties. After all, they are human, and they deserve empathy and to be heard. Ensure that they know the lines of communications are open and you’re going to take care of them.
5. Do exactly what the lease says.
Stick to your word, and stick to the lease agreement between you and your tenant(s). If you uphold the lease, your tenant will respect you and will understand that the boundaries are written in black and white and violations will not be tolerated.
Being an awesome landlord is not only fulfilling, but it can also be very lucrative. You need the right tenants to preserve your asset and build your wealth, so it is imperative that you do your best to be a good landlord. This will allow you to find and keep great tenants!