Essential Tips for First Time Landlords

Did you recently buy an investment property?

This is all very exciting and should be celebrated. However, you also want to take some time now, as a new landlord, to gain knowledge and reflect upon how you will make this business a success.

Operating a rental property presents certain challenges, but they aren’t insurmountable.

In this article, we’ll offer you our essential tips to succeed as a first-time landlord! With time, as you broaden your experience, you will develop your own tips that’ll prove useless for you. 

1. Prioritize Rent Collection

For a first time landlord, you may find it awkward to be firm with rent payment. However, it’s good practice to prioritize this as early as possible. Your tenants will respect your policies and you’ll be able to pay your mortgage and bills on time.

Here is what you can do:

• Implement late payment fees

You want to send the message that prompt rent payment is expected. Thus, your lease should stipulate late payment fees. By implementing this fee, renters will be more likely to pay on the scheduled date because they won’t want to pay the penalty. 

• Offer multiple payment channels

When you offer your renters multiple payment channels, it’s encouraging. It means they can choose the method that is most convenient for them. Options can include: electronic bank transfers, payment through the ATM, cheque, cash, etc.

2. Maintain your Property

It’s vital that you know your responsibility when it comes to property maintenance. This is legally required under the State law. You are bound to keep your rental unit habitable, safe and secure and strictly adhere to the building codes.

Here is what you should consider:

• Curb appeal

Hire a gardener if needed to keep the bushes trimmed. Curb appeal attracts prospects and increases a property’s value. Make sure your fences are in good condition, the lawn grass is trimmed and the trees look healthy and cared for.

• Professional cleaners

An immaculate rental unit will make your renters appreciate living in your rental space. It also delays normal wear and tear. Allot a budget for professional cleaning services to make your property even more attractive.

• Regular inspections

Performing inspections is very important.

Don’t wait for complaints to perform the inspections. Instead, be proactive and check critical areas such as roofing, plumbing, heater, air conditioning units and attics or basements. 

• Attend to repairs promptly

As a property owner, you’re obliged to be attentive to repair problems. Otherwise, a tenant may legally refuse to pay the rent in some States. Thus, if you want to avoid this scenario, it’s essential to be mindful by fixing any damages right away.

3.  Carefully Screen your Tenants

Follow a great protocol for tenant screening. This will help you keep away from stressful conflicts that result from a poor tenant choice.

Here are some ways you can screen tenants: 

• Meticulous assessment and income verification

You want to make sure that the tenant can afford to pay the rent. So, you can check his income by asking for bank statements and a job employment certificate. Some applicants may omit certain information or provide false data so it’s best to verify.

• Ask for pertinent documents

To perform a proper tenant screening, you must require your interested prospects to submit documents. Among these are income statements, references and employment proof. Assessment is easier when you have the complete set of documents to determine tenant suitability.

• Double check references

Past behavior can be a good predictor of future disposition. It’s wise to contact previous landlords and ask for their objective feedback. Ask questions such a "why did the applicant leave?" and "were there difficult problems that arose from their previous rental unit?"

4. Hire a Professional Property Manager

If you believe that you still have plenty to learn as you become a full-time landlord, then working with a reputable property manager is advisable. Acquiring legal knowledge relevant to rental property operation takes time. Thus, having an experienced property manager by your side is reassuring. You also have the benefit of absorbing critical knowledge that would normally take longer for you to know.

Working with a property management company is beneficial for the following reasons:

• Experience

Longevity of experience matters a lot. Property managers have already confronted tricky situations when managing rentals. They’re able to navigate complex cases more expertly. Late paying tenants? Check. Disruptive renters? Check. Emergencies? Check.

A property manager’s wide experience also proves his success rate in the industry. Do yourself a favor and take advantage of the depth of his management experience.

• Save time and money

Buying the software needed to run your rental property more efficiently is very costly. If you hire a property manager, you gain access to advanced systems. This helps cut down time-consuming activities when it comes to tenant monitoring and payment tracking.

For example, an experienced property manager will be able to showcase your property to tenants remotely by using video walkthroughs.

Bottom Line

To be a great landlord, you must be open to learning. Managing a property takes effort and time. There are several routes such as self-study or hiring a property manager to succeed. If you have vast amounts of time and focus then doing everything on your own will be rewarding in itself. If you want more peace of mind and time freedom then working with a property manager is a great alternative.

If your rental property is located in or near Charlotte NC, feel free to contact Dawson Property Management. We’ll provide you with stellar property management solutions. We can be reached at (704) 438-9834.