Working and managing properties is a great way to have a good source of income. A background in real estate is undoubtedly helpful, but it isn’t necessary for success with rental properties.
Here are some tips to simplify your rental business.
1. Accurate Information
Make sure you have accurate information about your tenants. It can be as simple as collecting rent on time and responding to tenant concerns promptly. There are also more complicated issues to deal with, and you may need to consult a lawyer or accountant.
2. Have an essential maintenance checklist
Put together a list of items to be checked, repaired, or replaced regularly. It will help you be sure that your rental property is adequately maintained and that tenants are not being subjected to unsafe or unhealthy conditions.
3. Create a standard lease
Make sure you have a standard lease for each of your properties. If you have more than one property, you may need more than one type of lease. A sample is available through the Texas Association of Realtors.
4. Remain Communicative
Make sure you are communicating with your tenants regularly. Contact them when rent is due, and be sure you know how to reach them in case of emergency. It is essential not only for being a good landlord but for being a successful business owner.
5. Keep good records on your properties
Ensure you keep accurate and current records on each of your properties, including rent rolls and property condition reports. These records will help you run your business more efficiently, and they may help protect you from claims by tenants.
6. Be familiar with the Fair Housing Act
Under the Fair Housing Act, it is illegal to discriminate against a renter based upon age, race, sex, religion, national origin, physical or mental disability, or family size. In addition, if you plan to evict a tenant because they have children or pets, there are specific guidelines under the law that one must follow.
7. Be familiar with the laws relating to comprehensive tenant screening companies
If you hire third-party consultants who perform background checks on prospective tenants, make sure that your renters know what is required of them. Keep a copy of the screening report for yourself as proof that background checks are being done correctly and that any person whom you hire has complied with the Fair Housing Act guidelines outlined above.
8. Be aware of your property’s Zoning
Ask your real estate agent or the zoning department about your rental property’s Zoning. If you do not know the Zoning, it is best to be cautious before starting a property rental business.
9. Be prepared when leading inspections on prospective tenants
Before showing prospective tenants a rental property, make sure that you have all of the matters covered and are ready to go at a moment’s notice if they have any questions or problems with the home or its amenities. It will help you avoid wasting time and save you from losing a prospective renter to a competitor.
10. Be careful not to get involved in subleasing
Subleasing can lead to severe problems if it is not done correctly. Subleasing means allowing someone else to live in the property while renting out their own home at the same time. It can pose problems for both the tenant and landlord. Subletting may also be against local ordinances, so check with your city or county for applicable rules before beginning a subletting program.
11. Focus on Customer Service
The most critical aspect of business success is customer service. It can be hard to focus on when running a busy rental business, but it is essential. The keys to good customer service are:
a. Setting clear expectations with tenants and having them sign an agreement to that effect.
b. Having a response plan available in case problems arise.
c. Communicating with all concerned parties and addressing concerns promptly.
If you are interested in starting a rental business of your own and would like more information on how to do so, visit ShieldManagement.Com.Au today, and we will help you chart the course for success
[su_box title=”Author Bio: Ray” style=”glass” box_color=”#d3e8f0″ title_color=”#010101″]Ray is a sought after thought leader and an expert in financial and money management. He has been published and featured in over 50 leading sites and aims to contribute articles to help novice financial planners. One of his goals is to impart his knowledge in finance to educate and help ordinary people create and achieve their financial goals.[/su_box]