24 Jan 6 Steps for the Beginner Landlord
Owning a rental property can be exciting, rewarding, and a great way to make additional money, however being a landlord is not all fun and games. You will need to work hard, be consistent, and make tough decisions.
Here are six steps to get you started and headed in the right direction as a newbie landlord.
1. Do Your Market Research
Find out what other rental properties, similar to yours, are priced at. You do not want to be above the market rate.
2. Create a Website for Your Rental Property
There are some great sites that will help you DIY a website for free or for a minimal charge and it will make you look like a serious and professional landlord. Take a look at the top 10 best builder sites for 2017. Having a website will allow you to post pictures, videos, FAQ’s, local things to do near your rental property, lease agreements, etc.
3. Advertise, Advertise, Advertise!
You can post an online ad about your great rental property, and most are free of charge. You can start with these well-known free rental listing sites; Craigslist, Hotpads, Oodle, and Trulia. Lovely, Trulia Pro, and Rentals.com are a few great sites that you will need to pay for. There are more advantages to these paid sites. For example, they have more traffic, exposure, and can lead to better and additional quality leads. It’s always a great idea to talk to other landlords to see what sites they are using.
4. Screen Potential Tenants
Conducting a background check on a potential tenant is a wise way to ensure a successful experience for you and your applicant. You will pay a fee but in the long run it will save you from more serious financial consequences. A thorough background check will include the following: Criminal history, Credit check, Previous landlord verification, Identity verification, and Employment verification.
5. Set Clear Rules and Expectations
Will you allow pets or cigarette smoking? Does a tenant recieve a discount if he/she pays rent early, or will there be a late fee if tenant is late on rent? Can tenants paint or make changes to the space? Will you do a move-in and move-out inspection? These are some of the questions you will need to ask yourself. Include these items in your lease agreement and make expectations clear to applicants. Click here for a sample lease agreement to get you started.
6. Require a Security Deposit
You do not want to be left high and dry if there is damage to your property. If your tenant has been great and there is no damage they will get their deposit back, but if there is damage you want to make sure the security deposit can return your rental space back into its original condition.
Let SAVA Insurance arm you with the knowledge you need to make the best decisions for your rental property and/or your business by giving us a call today at (860) 437-7282. What sets us apart from other agencies is our impressive knowledge in the insurance industry and how different types of coverage can protect our clients. Let us guide you in the right direction.