12 Tips to be a Successful Landlord

12 Tips for Successful Landlords

As a landlord, it can be tough to manage all the different facets of renting a house or an apartment. Here are some of the things you can do to ensure your relationship with tenants always remains on good terms:

Know Fair Housing Laws

Housing discrimination is a serious and common issue in the rental housing market. As a landlord it is very important to educate yourself on what you are allowed and, more importantly, not allowed to do when renting your property. You don’t want to unintentionally engage in illegal practices because of ignorance or negligence on your part, so take the time and do the research on Fair Housing Laws.

Setting the Right Price

This step can be a little tricky. As you set your rent price, consider how it affects your finances. Rent payments are the main source of income for your property and should be used to offset the property’s expenses. To compare your rental income to your rental expenses, you should list your fixed and variable expenses. Fixed expenses are your mortgage payment, property taxes, insurance fee, and HOA fees. Your variable expenses are utilities, repairs, and property improvements. By comparing income to expenses, it’s easier to see how the rental price will affect your monthly revenue.

To set the right rent price, however, research your market as well in order to learn the rent price of similar units in your area. This is ideal for setting a rent price that makes sense in your location, and it can be a bit overwhelming. No one wants to leave money on the table but setting a price too high won’t get your place the attention it deserves. If you are unsure of where to start or what the best market price is for your property, give us a call. Working with a Levine Homes Property Manager will ensure that you have a local expert guiding you every step of the way.

Market Rental Properties Effectively

To maximize your rental property’s exposure and get the highest number of applicants, it is important to list your rental online. Sites such as Apartments.com and Zillow work with dozens of other rental search engines to guarantee your property is searchable.

When advertising, make sure to be as accurate as possible with the description of your rental. This ensures that only people wanting the amenities your property provides will apply, thus making the process easier and more efficient. Also, people are visual, so it is important to post your rental with high quality, well-lit photographs.

Require a Rental Application

A good rental application should give you important information: name, current address and reason for leaving, employer, income, references, etc. It’s vital to ask the right questions so you have the information you will need to decide who will live in your property.

Require a Credit and Background Check

Credit checks are one of the best ways to learn if an applicant is financially responsible or not. Look for red flags like outstanding debt, undue payments, bankruptcy filing, and prior evictions. A solid financial history is a predictor that a tenant will pay rent on time. Haphazard screening and tenant selection can often result in problems, such as a tenant who pays the rent late or not at all, trashes your property, or lets friends move in without approval. So, requiring a tenant background check is an important way to learn whether a prospect will be a good candidate for rental.

Have a Written Rental Agreement

Having a written rental agreement is the best way to communicate your expectations and protect yourself in legal situations. Oral agreements are not enough. While they’re legal in some instances (usually for agreements that are less than 12 months), it’s difficult to prove what was agreed upon without a written document.

A useful rental agreement is specific, and all your clauses must adhere to state laws. You should think through what rules you want to include. Are pets allowed? Will there be a late rent fee? Do you want a noise restriction rule? Make sure your rental agreement is customized for you. If everything is mapped out in the rental agreement, there will be less confusion and better communication between both parties.

If you need help with this, Levine Homes can help. Contact us for help.

Handle Security Deposits Properly

Establish a fair system of setting, collecting, holding, and returning the amounts tenants pay up front as a security deposit. Inspect and document the condition of the rental unit before the tenant moves in, to avoid disputes over security deposits once they evacuate.

Get Insured

Purchase enough liability and property insurance. A well-designed insurance program can protect you from lawsuits by tenants for injuries or discrimination, and from losses to your rental property caused by everything from fire and storms to burglary and vandalism.

Make Necessary Repairs

Stay on top of maintenance and repair needs and make repairs when requested. If the property is not kept in good shape, you’ll alienate good tenants, and they may be legally entitled to repair the problem themselves and deduct the cost from the rent, sue for injuries caused by defective conditions, and/or move out without giving notice.

This requires some physical work, know how, and, more importantly, the ability to be flexible in order to respond to issues in a timely fashion. And a botched repair can wreak havoc on the relationship between you and your tenant, not to mention the expense. From getting your property rental ready to making sure it stays that way, Levine Homes construction department’s available professional in-house maintenance crew can help you safeguard against any tenant issues when it comes to the upkeep of your property, saving you the time and the headache.

Provide Notice Before Entering a Unit

The State of California requires that landlords give at least 24 hour’s notice before entering the property. Notify your tenants whenever you plan to enter their rental unit and provide as much notice as possible. This will ensure a better relationship between you and your client, as well as legally cover your behind.

Keep Digital Records of Everything

As a landlord, you should keep records of everything from deposit receipts, rent receipts, and maintenance receipts to a record of all landlord-tenant communication. Digital records can be securely organized without creating paper clutter, and free online storage is available through sites like Dropbox and OneDrive.

Holding onto receipts and communication records is a good idea in case legal issues emerge. If you have records of transactions and communications, then you are more likely to prove your side in court.

Keep Good Tenants

Finding the right tenants, screening them, and signing a rental agreement takes time and effort that you don’t want to go to waste. Constantly repeating this process can be exhausting, so the best way to preserve your time and money is to keep good tenants.

If you have a tenant who pays rent on time and takes good care of your property, then you should ask him or her to renew about 90 days before your rental agreement expires. Renewals help you avoid a vacancy and can help save time by not having you search for new tenants.

Conclusion

From managing your rental property business to finding and screening tenants and collecting rent, every step along the way matters. We want you to manage a top-notch rental business without sacrificing unnecessary amounts of time, money, and stress.  With the right advice and tools, being a landlord doesn’t have to be hard. If you have questions or concerns about any step along the way, please don’t hesitate to reach out. Or better yet let us do the work for you! Life can be demanding and it’s difficult to manage a rental on top of everything else. From conducting background checks to taking care of the paperwork, insurance, and property maintenance, our extensive knowledge will provide you maximum benefits with minimal effort on your part. Levine Homes trusted experience will ensure that you, as a landlord, are always protected.