Being a residential landlord can be a risky game, but the potential rewards that you can expect to benefit from make it totally worth it. Thankfully, this guide contains some of the best ideas and recommendations that you can make the most of to succeed as a real estate investor, and it couldn’t be easier to begin a profitable residential landlord journey today.
So, what are you waiting for? Read on to discover some of the best tips for residential property management!
Choose A Prime Location
One of the most important things that you need to look for when you’re scouting out the perfect rental property is a prime location. You’re going to find it tricky to achieve your goal of even becoming a residential landlord if you cannot attract a tenant due to your poor choice of location, so you need to take the time to scout out the best spot if you want to get the most out of your investment property.
It would be a terrible mistake to choose a property that’s in a particularly bad location, such as a home that is next door to a loud factory or stinky waste processing plant. No one will have any interest in renting such a property, for obvious reasons. As a result, it’s always a good idea for you to take the time to look around a few hotspots that boast great properties in prime locations
A property that is close to a train station or bus station is going to attract working professionals who commute for their career, so this is an option you might like to explore. Alternatively, a property that is close to a school will make a great home for a family, meaning you’ll probably have a queue of candidates lining up to rent in such a prime location. Inner city locations are ideal for students as this tends to be where colleges and other educational facilities are – just make sure you have amenities like grocery stores, restaurants and bars close by!
When you take the time to factor location into your considerations as a residential landlord, you’ll stand a far better chance of making the most cash from your rental property.
Attempting to rent out a property that has very little aesthetic value is going to be tough, as it’s fair to say that not many people are going to want to live in a home that’s dated, uninspiring, and lacking any style whatsoever.
Chipped paint, old furniture and tired appliances will turn even the most optimistic of individuals away from the opportunity to rent your property. However, it can be so simple to avoid this scenario completely by prioritizing aesthetics through a little renovation work.
Spending some time repainting and remodelling your property whenever a long-term tenant vacates will ensure it can feel fresh and new for the next resident. A lick of paint can even give off the impression that the space is new or at best has been recently refurbished, so such a simple touch can make a big difference to tenant satisfaction.
If something gets damaged, replace it. This is a basic responsibility of a good residential landlord, and broken items or appliances have a huge impact on aesthetics. There’s no point in trying to ‘save money’ by not fixing things, as you will end up losing money when you can’t find a tenant wanting to rent such a dysfunctional and displeasing property.
Seek Out The Best Tenants
A vital aspect of a successful investment property project is a quality tenant. You need to take the time to find a reliable renter that isn’t going to cause you any trouble, as it’s going to give you serious grief to have to handle issues like property damage, missed rent payments and more.
Finding tenants is easy; sometimes too easy. As soon as you post an advert on one of the many renting platforms online, or contact an estate agent that will market your property, you’ll likely be inundated with requests from seemingly motivated potential renters. However, you need to take the right steps to locate the most responsible, respected and sensible tenants that aren’t going to mess you around in any way.
Utilising a good estate agent will give you more of an opportunity to ask for proof that a potential tenant is able to keep up with the rent, as you can request bank statements or references from previous residential landlords. Some estate agents also offer support if ever you were to get into a tricky situation with a resident that they helped to find.
Finding a tenant that has a proven positive track record will give you the peace of mind you need to sign the contract without stress. It’s more likely that such a tenant will take good care of your property throughout their stay, and you have a better chance of getting paid the full rent on time each month. If you do manage to find a reliable tenant who shows that they can look after your property and keep up with payments, then you may wish to offer them more attractive terms to continue their lease after their initial contract has finished – good tenants aren’t always easy to find!
Don’t Forget To Protect Your Assets
You need to protect your assets when renting out a property, as all manner of issues could affect your position if you don’t have the right cover. A worst-case scenario would be a disaster such as a flood or fire taking place inside your property when you have no insurance, as you will have to pay thousands in repair work to bring it back to a good standard.
You can also utilize your rental contract as a way to protect your assets, as you can detail rules or guidelines for your property that can help to maintain the building in the best condition. Said contract then needs to be signed by your tenant, which turns it into a legal document that could be used in court should any issues occur.