5 Things You Need to Know Before Becoming a Landlord
Wouldn’t it be nice to make additional monthly income? Think about what you could do or where you could go!
Becoming a landlord might give you the financial freedom you’ve hoped to find.
Before you start counting dollars instead of sheep, there’s much to learn about becoming a landlord. Read on to learn 5 landlord tips to prepare you for this career and lifestyle.
1. Screen Your Tenants
One of the first tips before becoming a landlord is to ensure you have a process to screen your potential tenants.
Tenant screening makes a difference in the rental process. Before they move in, you should have your renter’s proof of steady income, credit report, and any references from employers or previous landlords.
You can use a program to screen tenants to ensure you receive authentic information and data from renters.
2. Develop Your Policies Ahead of Time
As you prepare to become a landlord, you’ll want to set policies in your rental agreement.
Don’t wait for a problem to develop your rental policies. Plan ahead for scenarios or situations that might arise during the rental agreement period.
Consider adding a pet policy, late payment, or non-payment policy. You can also write your policy for maintenance and repairs of the property.
3. Involve an Attorney in Forming Your Agreement
After writing your initial policies and rental agreement, it’s wise to involve an attorney in the process as a new landlord.
An attorney can help you review your agreement to ensure nothing is missing or needs to be clarified. They can also help you understand your landlord’s rights and requirements, such as the 3 day notice of eviction.
Save yourself from unnecessary financial or legal strain in the future by ensuring your agreement is sound and clear.
4. Consider a Management Company
A helpful piece of landlord advice is to remember that you don’t have to manage it all by yourself.
Stay out of all the weeds of managing the rental property by hiring a management company to help you. A management company like Chicago property management services can help with communication with tenants, collecting rent, and scheduling property maintenance and repairs. Save yourself some headaches by enlisting help with many of the day-to-day responsibilities.
5. Be Realistic About Rental Income
When getting started with managing rental properties, it’s vital that you aren’t relying solely on this income to pay bills or make ends meet.
With repairs and maintenance, and potential missed rental payments, you want to make sure to use other streams of income to pay bills to eliminate risk.
Know the Essentials of Becoming a Landlord
Becoming a landlord can sound both exciting and intimidating. Bring in extra income by setting yourself up for success in renting your property.
Knowing how to get started is crucial for starting on the right foot and having a positive experience for both you and the tenants.
Learn more about property management and real estate on our blog. You’ll find tips and resources for home maintenance and property ownership.