The idea of becoming a landlord can be both exciting and a little frightening. If you speak to any seasoned landlords you can bet they have come across their share of bad experiences. Seasoned landlords have experience that leads to less bumps in the road. They have paid their tuition over the years for this education, so to speak. Here are some tips I’ve picked up along the way myself…
Do make sure you get a complete get an application. Collect a full application including credit check, proof of employment, proof of income, and proof of assets. Even if you know the prospective tenant you’ll want to make sure they provide you with proper documentation.
Do meet the prospective tenants in person. You’ll want to see if they show up on time, take care of the vehicle they arrive in, have any extra tenants with them, etc. Meeting people in person affords you the opportunity to dive a little deeper versus just reading an application.
Do try to visit your applicant’s current residence. Offer to pickup their application in person if need be. You’ll benefit from seeing how they treat their current residence.
Do make sure to document the condition of the property before you hand keys over to your tenant. Pictures are a great way to ensure everyone knows the condition of the home.
Don’t rent to people who complain about the house when viewing it. If a perspective tenants walks in and asks if you’re going to fix this, or paint, that, etc., if then it’s probably best to find another applicant. You want a tenant who is excited by the prospects of living in your home.
Don’t let tenants sublease or exchange out tenants along the way. You know the condition of the home when you rented it your tenant. Do not allow turnover to happen without a brand new lease and deposit. You’ll never be able to verify the condition of the home and have documentation required for retaining a deposit after a lease.
Don’t rent to people who don’t show up on time. You want tenants that value your time and know how to make a good impression. If an applicant is late for an appointment they might be late with the rent payment too!
Being a landlord is a lot of work, but it is also a great way to accumulate wealth. No doubt, you’ll pay a little tuition along the way. Feel free to reach out to us with any of your landlord questions.