4 Steps to be an Effective First-Time Landlord

Landlord providing the key and contractSo, you’ve finally purchased your first residential property and are now ready to spruce it up for rental. You’ll have to decide if you’re going to rent it furnished or not. You’ll need to invest in water processing equipment to make sure your tenants have safe water to drink. Are you going to manage it yourself, or will you need a property manager? All these and the following tips will help you become an effective landlord for your new residential building.

Prioritize your tenant’s rent

The rent you’ll be receiving should be a priority for you, especially if this is your only source of income. Create a financial plan and process on advances, deposits and contingency plans for late payments. Part of this means keeping an open communication line with your tenants so you won’t have to deal with unanswered calls during collection.

Have a good screening process

Having to evict a tenant consumes too much time and can also be costly. It’s your responsibility to screen your tenants wisely to make sure you’re accepting responsible individuals in your building. Besides doing background and credit checks, also get to who they are so you’ll know what to expect if you accept them.

Know your fair housing laws

It’s your responsibility to research on local and federal housing laws before even accepting tenants. Neglecting these may cost you a lot of money. It’s wise to consult with attorneys if you need more information on this.

Only renovate to increase your property’s value

If you consider a renovation in the future, make sure that it’ll raise the value of your property and your rent. If not, it’s just going to be a waste of time and money.

If this is your first time to venture into something like this, don’t fret. All businesses are exciting and fulfilling if done properly. These tips will help you get started on this journey as an effective landlord that’s destined for success.