Tips for First-Time Landlords

landlord

In the US, there are around 11 million individual investor landlords. If you have the money, investing in property to rent out can be a great way to make some passive income. But it’s definitely not as easy as just owning a house, renting it out, and collecting rent. Many newcomers are surprised that being a landlord entails many more tasks, which can leave you feeling overwhelmed pretty quickly.

If you’re a first-time landlord, you’ll want to read on. We have some practical advice for you in this article.

Invest in Good Property

You might be excited to jump straight into this opportunity, but don’t just buy the first property that you can afford. Take some time to look into the qualities of the rental property you’re interested in to make sure that your money is well spent. This is probably one of the best tips to get started!

You’ll also want to get an inspection done before putting money down. This ensures that there are no hidden issues you’ll have to deal with.

Come up With a Good Vetting System

The eviction process can be a long and tedious one. So you want to make sure you’ve done everything you can to avoid it in the first place.

Don’t be too eager to fill your rental property with tenants. Make sure you ask potential renters for their:

  • Contact information
  • Current and previous addresses
  • Proof of income
  • Employment history
  • References

You’ll also want to perform credit checks to make sure you’re only renting to people who have good credit histories.

Don’t Spend All Your Rental Income

When you receive those rent checks, you can get a pretty penny all at once. It’s tempting to spend all that money, but what you should know is that the smart thing to do is to save a good chunk of it. We recommend saving around 6 months’ worth in mortgage and property maintenance costs.

You never know when things will go wrong on your property. And when they do, you want to make sure you have the proper cash reserves to cover those issues without draining your bank account.

Always Take Pictures and Videos Before Tenants Move In

You’ll be collecting deposits at the beginning of the contract to cover any damages you might need to fix after renters move out. But many will try to claim the damage was already existing so they can get the full amount back.

Cover yourself by taking pictures and videos before tenants move in. You should also have a move-in walkthrough where you and the tenants sign a document that notes that everything is in working order (and what isn’t).

Be the Best Landlord You Can Be

Being a landlord can bring in some great passive income. But without knowing the right steps to take, your responsibilities can become monumental.

We hope that our tips have given you some insight on what to do so you can be a first-time landlord with ease!

If you need additional help with listing your property, or you have other real estate questions, please don’t hesitate to contact us!