When renting out your first property, there are many things that can go wrong. This guide can help you get the most of your rental properties and prepare you for what to expect with tenants.
Do: Get an Inspection
Before you have tenants ready to move in, it’s important to be aware of any potential issues that may come about. That’s why it is important to have an inspection done before viewing. Be aware of any leaks, wiring problems, air flow issues, mold or anything else that could come to light. Not only could this save a lot of time and money in the future, but it will help protect both your tenants and your investment.
Do: Stay Close by
No matter how prepared you may be, there will be unexpected problems with renting a property. Staying close by can help mitigate any potential disasters and keep an open and clear line of communication with your tenants, and will help save money and maximize profit on your first investment. Once you’re established, it will make sense to hire a property manager to cover any issues that may come up on subsequent properties.
Do: Know Your Tenants
Taking in renters is always a risk, and it’s important to know who you’re dealing with before they’re in your home. It’s important to thoroughly check through the history of any prospective tenants. Call their previous residence, have character references, and be fully aware of anything to expect.
Don’t: Mix Business With Pleasure
As tempting as it may be, you don’t always want to rent exclusively to family and/or friends. Personal relationships can complicate the position of a landlord and ultimately jeopardize the personal and professional sides of your connection. While renting to someone you know may not always be an issue, it would be advised to not rent to anyone you don’t want to lose in your life
Don’t: Go In Blind
Many people will buy an investment property without fully thinking about the effort that needs to be put in. Do a background check on any perspective tenants that may come into your house so you know any background history on them. Be prepared to make fixes on appliances and utilities when things go array
Don’t: Guess on Value
When you’re renting your property out, make sure to do some research on what the best rent would be for the area as well as how much your mortgage is. At the end of the day, you want to make a profit renting out the property while making sure you get the best tenants. Asking for too high of a rent will alienate the market while asking for too low means not making a profit. Do your research before setting a price.