Being a landlord is a lot of work, but it can also guarantee you passive income, especially once the property is paid off. There are some downsides to being a landlord: you are responsible for the upkeep of the building and handling various issues when they arise.
Although there are landlords who don’t put sufficient effort into taking care of their properties, others stand out as exemplary. These individuals are committed to their investment, but they also honor the human element and keep in mind that tenants make these spaces their home.
To be the best possible landlord, you’ll have to balance the financial side of things with being a good human being. Here are some ways to do just that, which will help you to succeed as a landlord.
Treat Being a Landlord Like a Business
As Forbes points out, the most successful landlords and property managers run their operations with a sharp eye for business. They stay on top of the necessary legal documents and work with experts and accountants to set up everything correctly.
These individuals work hard, especially when they’re starting out. They make the time to learn all they can and think in the long term. It may often feel frustrating to have to deal with maintenance issues, for example, but taking good care of the building will make it last longer.
Know the Legal Requirements
Understanding Fair Housing laws is crucial to avoid any lawsuits that could drag out and cost a lot of money. Depending on your state, there are slight variations in the regulations that govern housing.
Some states favor tenants’ rights more strongly while others lean more toward landlords. Regardless, it’s wise to know what’s legal and what isn’t.
There are also federal laws that make it illegal to discriminate against anyone in a protected class. It’s smart to possess a basic understanding of the Fair Housing Act. If you do, this will save you future financial and legal issues that no one would want to face.
Be the Type of Landlord Good Tenants Want to Rent From
Being a renter isn’t always easy, and there are times when building owners take advantage of their tenants. But, from a landlord’s perspective, there are concerns such as rising property taxes or destructive tenants to shoulder.
Though you might find yourself saddled with a bad tenant on occasion, you should try to market to good renters. One helpful tip is to ask the tenants you currently have who are reliable and respectful whether they know anyone to refer to you the next time a unit opens up.
Another surefire way to attract more acceptable renters is to be respectful, considerate, and communicative. Many people will appreciate working with a kind and fair landlord and they’ll be more likely to take care of their premises when they feel they have one.
Set Up a Tight Leasing Document
If you are new to renting out properties, you might want to work with a real estate lawyer or someone else who has more experience than you do. It’s essential to have the right paperwork for tenants to sign.
You have to know that your documents are legitimate and legal, and you also want to make sure you cover all your bases. The lease should clarify common renter issues and lay out the policy on such items as pets, parking, and more.
With these foundational elements in your head, you’ll be off to an excellent start with your first property management venture, or you might find ways to improve your current rental process. Making wise decisions on the human side as well as the business side will make all the difference.