It’s 2017, and the property market is buzzing with opportunists, baby boomers reaping the benefits of what they sowed thirty years ago, and property investors hoping to make a tidy profit from one of the surest ways to invest your money. There are plenty of reasons why buying and renting out a property is one of the most useful, efficient passive incomes you could come across, but like most investments, it comes with its share of maintenance and responsibility. Being a landlord takes charisma, know-how, patience, and reputation, ensuring that your property is being cared for by the best, while you maintain that hefty mortgage and unforeseen costs that arise. Here are three things you need to know when becoming a landlord that’ll help you get the most out of your property and investing your money.
Maintaining the Property
The first thing to know when becoming a landlord is the right people to call when it doesn’t go exactly according to plan. Things like plumbing, heating, and electrical problems are all too common when bringing in tenants to your rental property. Aside from having the bank account topped up in anticipation of the inevitable, its also wise to have a go-to list of trusted service repair companies that you know are going to get the job done, at the price that they’ve quoted. Having a reliable, reputable plumber and electrician that you know you can ring up to get out to the property in a reasonable amount of time and have the job done without too many hang-ups will make your life a lot easier, and reduce how much you have to worry. Visit our site to check out one of the best heating and plumbing companies – they know the ins and outs of being a landlord, so you know you can trust them.
Paying the Rent on Time
The second thing you need to know as you gear up to become a landlord for the first time is, whether you’re a passive person or an assertive person, you’re going to have to put your foot down when it comes to certain parts of the tenant-owner agreement. Paying the rent on time goes without saying in the paperwork of a tenancy agreement. But if you start to become soft with your tenants and let a couple of weeks pass before broaching the subject of rent, soon you’ll be chasing them down for the last three months worth of rent that they haven’t gotten around to paying you. Putting your foot down from the very beginning and saying that rent has to be paid on time, period, will help you avoid any awkward phone conversations.
Checking in Regularly
The third and final thing you need to know as you prepare to embark on the journey of a rental property owner is to be consistent and persistent about inspecting the property regularly. Expert property investors even suggest taking photos of the interior and exterior of the property before you get the tenants in, just so that for your peace of mind you know exactly what it looked like before they began their lease. That way, if things do start to go a little pear-shaped with the maintenance, you can confront them gently and know that legally, you’re in the right if it should amount to anything. There’s no harm in setting up a three strike rule where, if things do start to get sloppy, you can allow them time to clean up before setting a date for another inspection. It’s your prerogative to check and inspect your property whenever you feel the need to, so putting those original boundaries in place will certainly save you some grief later down the line.
There’s never been a better time than the present to buy a couple of books on owning property, and get savvy with the thought of becoming another successful investor in the real estate market. It’s good to remember a few tips and tricks when embarking on such a journey, as the road isn’t always a straightforward one. Doing your homework and researching just what it takes to be a fair, relatable landlord who sticks to their guns and make sure the agreement is kept on both sides will save you a lot of unexpected problems and issues in the long run. The more you know about owning and running a property when getting into the business, the better off you’ll be.