If you are thinking of becoming a landlord, there are a few things you should do first to make sure the experience goes as smoothly as possible. In this post, we will outline three steps before becoming a landlord. Following these tips will ensure you are fully prepared for the responsibilities and challenges of being a landlord.
Learn the basics about being a landlord
Renting out a property and being a landlord is a great way to make extra money to supplement your income or occupy a space you are not using. With that said, many responsibilities come along with being a landlord, and if you are new to it, you should probably take note of what they are.
A landlord owns a property and rents it to someone else for business purposes, living purposes, or something else. As a landlord, you have certain responsibilities, such as handling maintenance, ensuring the tenant complies with your property rules, and more.
You also need to find the right tenant for your property, have a good understanding of the basics of lease agreements, and screen tenants before you sign any contracts and allow them to live on your property.
Bear in mind that these things can always be trusted to a professional letting agent, which you can find at Western Lettings over here, as letting agents will do all the work on your behalf and can take care of a range of tasks, including marketing the property, conducting viewings, negotiating leases, and managing the day-to-day running of the property.
Screen potential tenants thoroughly
One of the most important things you should do before becoming a landlord or signing a contract is to screen the potential tenants thoroughly. Screening tenants is incredibly important so you can have a good idea of who the person is, whether or not they can afford to live on your property, and their credit score.
When screening potential tenants, you should check their rental history and meet them in person to get to know them better. You are also allowed to ask for references from their past landlords or employers so that you can vet them.
When meeting potential tenants, it is a good idea to do a walkthrough of their current residence to see how they live and whether it is up to standard for your property. You should make sure they are aware of your house rules and regulations and that you get a security deposit in writing so that they have an understanding of what they will need to pay upfront.
Protect your property as an investment
Last but not least, the final step you should take before becoming a landlord is to ensure that you have a solid lease agreement that covers all of the aspects of the rental agreement. This can include everything from the cost of the rental property, the cost of any extra amenities, the date that payment needs to be made, the rules of the property, and more.
Before you sign a lease with any tenant, you should ask for a security deposit and the first or last month’s rent so that you can protect your investment. While someone is living on your property and renting from you, keeping up with the repairs and maintenance is a good idea as this will save you money in the long run.
To keep your property and investment secure and protected, you should screen tenants carefully to avoid any bad situations down the road. You can also charge market rates for rent to make a profit and evict tenants who are not following the lease agreement or causing damage to your property.