The ultimate goal of investing in rental property is turn a profit. To make sure that you achieve that goal it is essential that you follow several critical guidelines.
First, always make sure that you check references. This can be a burdensome step that many landlords overlook if they feel as though they have a good instinct about the tenant when they meet with them. Not checking references; however, can lead to a number of problems. A good real estate negotiator or agent will be more willing to help you to conduct due diligence and reference check on the tenant. You can uncover a wealth of information about potential problems before you rent to a prospective tenant.
Always make sure that you have everything in writing. This is to protect not only your rights but also the rights of your tenants as well. Everything from the code of conduct, and term and conditions you expect tenants to abide by while renting your property to the inventory list itself should be in writing.
You will find that you have better success with your rental property if you take time to ensure that your property is both secure and clean. The grounds of the property should be free of clear and trimmed regularly. Not only will the property be more visually appealing but these actions will also assist you with property liability. You will also want to take additional security measures. Extra security may be able to lower your insurance premiums as well as provide an incentive to quality tenants to rent your property when they know it is secure.
If you make the decision to hire a property manager, take the time to interview prospective candidates very carefully. Property managers can be quite helpful if you do not have the time to attend to all of the details yourself. The wrong property manager; however, can cause you tremendous problems. This means that you will need to hire a responsible and professional individual to handle the job.
Always make sure that you obtain adequate insurance for your property. One incident is all it takes to wipe out your lifetime investment. Check with your insurance company or insurance agent to determine the basic insurance to obtain and whether any additional insurance coverage is required based on property condition.
Regardless of the condition the property was in when you purchased it, there will come a time when repairs are needed. This is part and parcel of owning rental property. If you take too long to make repairs, not only will your property suffer and repairs will ultimately cost more to take care of but you will also likely lose quality tenants as well. By making sure that you handle repairs promptly you will be able to maintain the life of your property as well as retain good tenants.
Always make sure that you follow all applicable regulations set by local authority in the renting of your investment property. If you violate those regulations you could find yourself facing a lawsuit that is costly in terms of time as well as money. The best course of action is to take the time to do your homework and consult a lawyer experienced in real estate matters for guidance regarding the regulations and Acts. A good and experienced real estate negotiator or agent can offer you good advice and guidance on this area too.
Finally, make sure that you do not violate the privacy of your tenants. Please consult a lawyer to find out whether you must provide any type of notice to your tenant before you enter the tenanted property for property inspection or any other valid reasons. A proper Tenancy or Lease Agreement should have this clause stated clearly.
Following these guidelines will help you to retain quality tenants and avoid any potential legal problems.