Being a landlord can give you peace of mind by providing a steady stream of income to your wallet. However, it certainly comes with its challenges and confusing hurdles. These are three tips every beginner landlord should know to make becoming a landlord and staying a landlord easier.
Consider a Property Management Service
Property managers can make a landlord’s job so much easier. They offer helpful property management services, such as tenant screening and rent collection, that can further streamline the process of your passive income. More importantly, hiring a management service can help you avoid getting into any legal issues and decrease the rate of how long your property is empty from tenant turnover.
Craft a Clear and Concise Rental Agreement
A rental agreement is a clear way to communicate the expectations of your lease to your tenants. The agreement will outline the security deposit terms, the specifics of the lease term, which utilities you will provide, who’s responsible for what repairs, and other rent details. In addition, it should answer questions such as:
- Is there a late rent fee?
- Is there a noise restriction or curfew?
- Are pets allowed? If so, are there breed and weight restrictions?
- What is the wait time for issues?
- Who is responsible for the repairs?
A clear agreement that both parties have to sign can save you future headaches as well as unnecessary conflicts and negotiations.
Require Renters’ Insurance
Renters’ insurance will protect you and your tenants in the case of damage to the tenant’s personal property. It states that while you are not responsible for any theft or damage to property that isn’t yours, the tenant is still protected in case of fire, theft, or any other harm that may come to a tenant’s personal belongings.
The insurance will help cover any damages that may occur and will protect you from any legal liability.
These three tips that every beginner landlord should know will go a long way toward protecting you from legal trouble and make your work as a landlord much easier. So, start brainstorming that rental agreement and talk to your local property management service today! You and your wallet will be glad you did.
