If you’re new in the world of renting out your home or investing in real estate, you may not be familiar with what it takes to be a successful landlord. While renting your home can be a relatively easy way to make passive income, there are some things you need to take care of for it to be a success:
Always Sign A Lease
The tenant you allow to rent your property may be a wonderful person. Whether they’re super personable or a friend of the family, you want to have a lease ready for them before they move in.
A lease can protect both of you should any issue arise and ensure you get your payment on time every month, along with a rental bond. It can help you avoid losing money and give you peace of mind.
It’s simple; just create a fair lease (consider doing so with a lawyer), have the tenant go over it, and they can easily sign through an online lease agreement.
Screen Possible Tenants
People can be very charismatic and easy to like, and you may meet potential tenants that could seem just perfect. Unfortunately, not everyone is who they say they are.
To avoid renting your home out to people who may end up wreaking havoc on your house, screen any potential tenant. You may find information that will make you thank the heavens you screened them first.
Include Repair Guidelines Within The Lease
Repairs can be one of the trickiest aspects of renting out a home. In some cases, you’ll find tenants will want to avoid taking any responsibility for the damage they cause. In other cases, you’ll need to take care of some repairs.
This could look like freak nature damage, such as the freeze in Texas that wreaked havoc on people’s homes or damage that is simply from the wear and tear of a house being lived in for multiple years. You’ll want to outline this in the lease, so there’s no question about it once the home is being rented.
Be Professional & Friendly
You want to be friendly to your new tenants, but you also want to be professional. There can be a fine line between the two, but it’s important to treat renting out your home like a business so that it’s easier to handle any discrepancies that arise, such as late payments or damage to your home.
However, stay cordial through it all, as you don’t want to get a reputation as “that nasty landlord.” This is also another way that a lease can be helpful as it helps you stay friendly while asking for specific things from your tenants that have been outlined in a lease.
Ensure Communication Is Open & Honest
Make it easy for your tenants to contact you should problems arise. The last thing you need is frustrated tenants because the house is hard to live in. And you’re nowhere to be found.
If you travel often and are typically unavailable, you may want to hire a property manager. Or, if you prefer direct communication and easy payment processing with your tenants, consider using a software program like RentRedi. It makes it so much easier for everyone.
Treat your tenants fairly while also making sure to keep yourself protected. This is mostly done through detailed lease and home insurance. Screen tenants as well, so you can be sure you’re renting to people who are who they say they are.
As friendly as potential tenants can be, you’re essentially running a real estate business. When renting out your home, you should always treat it as such.