6 Tips To Help You Become A Successful Landlord

Mark Twain said, “Buy land, they’re not making it anymore.” This insightful quote should help you put your faith in real estate investment. However, buying a lot of property isn’t enough. You also need to generate income from it. In order to do that you need to rent out your property. Once you start renting out your property you become a landlord. There are certain precautions you should take to protect your investment. Here are 6 tips to help you become a successful landlord.

Keep Local Realtors Close

You can take out all the ads you want, but realtors are the ones who bring you clients. They can help you find the right tenant for the right price. This is why it’s important to keep them close. Sure they’ll take a commission for it, but what in this world is free? Build a strong rapport with local realtors, so you can approach them for new tenants in case the old ones decide to move on. When you have multiple homes you need to keep them occupied or you’ll end up paying for them yourself.

Always Run a Background Check

Everyone seems legitimate on paper, but when you dig deeper that’s when the skeletons emerge. Before you even think about considering someone as a tenant, make sure that you run a background check. This in no way implies that you should hire a detective and have that person followed. All I’m saying is that you should make the effort to know a little bit more about the person. You can easily verify most of their claims through the internet. Others can be verified by paying an unscheduled visit or interviewing friends and family over the phone. You don’t want to accidently rent your house to a criminal.

Make Your Decision Wisely

You may have multiple applicants who all deserve to rent your house, but how do you make the final decision? I know how I would do it. I would select the best looking one out of the bunch, but that may seem biased to you. Unfortunately, I can’t really help you with this decision, because your preferences are different than mine. All I can say is that you should once again go over the facts carefully, before making your decision. Even if there is a shadow of a doubt, don’t let it slide.

Do Your Part

There are certain responsibilities that you have towards your tenants. You need to keep them content in the house they’ve just rented. If you fail to do so, you won’t just lose your tenant, you may even be sued. Paul Thomas Anderson and his partner Maya Rudolf sued their landlord over a bedbug infestation in their rented apartment. That’s something the landlord should have handled or at least warned them about beforehand. He was sued for almost half a million dollars in damages and they also asked for their deposit, rent and commission back. Damn dirty bedbugs ruined the whole deal.

Hire a Maintenance Service

When you’re the owner of multiple homes, maintenance can be an issue, especially when there’s no one occupying those houses. Proper upkeep of your property is important if you want to rent it out on a later date. Let’s face it, you’re not going to do it yourself, which is why you should hire a facility maintenance service. They’ll maintain your house in proper order until you can find a tenant to take possession of it. After that, the tenant will be responsible for the maintenance. However, you’re still responsible for all the repairs of the house.

Hire a Lawyer

As a landlord, you can sometimes be conned or sued by your tenants. To avoid unpleasant situations such as these, you should hire a lawyer. Let your lawyer handle all the paperwork, so things don’t go south for you. However, you should be careful when hiring a lawyer. Don’t hire someone based on recommendation alone, do your research. Hiring the right lawyer is just as important as hiring the right tenant. Your property is in their hands, so make a wise decision.

If you use the tips mentioned here, I have no doubt in my mind that you’ll become a successful landlord and your property will be safe. And let’s not forget all the money you’ll make collecting rent.

Featured images:
  • License: Creative Commons image source
  • License: Creative Commons image source
  • License: Creative Commons image source
  • License: Creative Commons image source
  • License: Creative Commons image source
  • License: Royalty Free or iStock source: http://openclipart.org/image/300px/svg_to_png/190625/Load_Balancer-NEW.png

The author of this article, Adam Collins, is an employee at Broad Services, leading providers of commercial maintenance services. Adam loves outdoor sports and is a part of baseball team at his college.

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