Being a landlords sounds pretty fascinating until you become one. Owning a property comes with its own set of challenges. Property owners often have to face bad tenants who don’t pay the rent or try to damage the property. Handling such tenants is not always an easy task. Landlords need to have good experience and an active mind to keep their property safe.
If you aim to start a business in real estate, you must know that putting your property up for rent does not guarantee an easy money flow. You need to do your homework on knowing the rental laws, setting up a proper rent amount, practicing active screening of tenants, etc.
Here are nine important aspects to consider before you post a room for rent online as a new landlord –
1. Your Rental Property Is Your Biggest Asset
Your property is the only tool that can give you a return. You can easily post room for rent online to get prospective tenants. However, it does not guarantee to get ethical tenants. Therefore, it is important to take the necessary steps to manage your property. If you rent it to someone, don’t wait for the contract to get over before starting the inspection. Instead make your presence felt to the tenant by visiting the rental property. However, refrain from disturbing your tenants by visiting too frequently.
You must be aware of the state laws for renting your property. It is always advisable to maintain a good reputation in society to avoid legal issues. New landlords also need to ensure their property is secured from accidents or theft. It is essential to have it insured to cover the loss caused by any mishap.
2. Hire a property manager
Hiring a property manager is a costly affair, but if you look at it broadly, a property manager can save you from several hectic tasks involved in managing your rental business. Since new landlords are not acquainted with finding and managing tenants, property managers can bring hands-on experience to operate your business smoothly. Property managers can also provide information about finding the best website to post a house for rent.
Proper maintenance of your property is your responsibility. But if you cannot manage your time or reside in another city, hiring people who can do the task for you becomes crucial.
3. Set an optimum rent price
Setting up an optimum rent is essential to attract prospective tenants. For this, you need to do a thorough research of your locality. Many new landlords set a price too high or too low compared to the market rate. This can result in a situation where you either get no tenant or make zero profit from the business. Both situations can be highly demotivating to a new business operator.
Uploading high-quality pictures of your rental property offers an added advantage in the market. You can list a room for rent on Diggz and even reach out to potential tenants or roommates
To avoid this situation, you need to know the average rental rate in the market and monthly expenses for your property maintenance. An optimum rent is considered the amount of money that gives you a decent profit after deducting all the expenses.
4. Search for tenants online
Most tenants search for apartments online. Therefore, it is recommended to search for a website to post a house for rent. To catch the attention of tenants, you should carefully list all the accommodations and features of your property, such as the total area of the house, number of rooms, bathrooms, nearby locations, etc. Uploading high-quality pictures of your rental property offers an added advantage in the market.
5. Follow a strict tenant screening
Tenant screening is crucial to avoid a bad rental experience. The primary motive of a tenant screening is to know if your property is in insecure hands. Sometimes tenants don’t pay the rent and cause damage to the property. This brings stress to the owner. To prevent such circumstances, you need to carefully filter applications and follow strict screening to know the present financial situations, criminal records, and records of prospective tenants Landlords.
6. Consider a background and credit check of the tenant
Doing a credit check is one of the best methods to know if a tenant is financially responsible or not. When doing a credit and background analysis, look out for any undue payments, eviction history, bankruptcy, debts, criminal records, damage caused to the last rented apartment, etc.
7. Sign a written agreement
A written agreement is important to save you from legal uncertainty. Although verbal agreements are effective in certain situations, they are less effective than written ones. While framing an agreement document, consider contacting a lawyer who has adequate knowledge of the laws implemented by the government for renting property. Some of the important points to include in the agreement are:
- What is the amount of the security deposit?
- What is the lease period?
- Can tenants keep pets?
- Can tenants pay late rent in certain situations?
A well-written agreement prevents any clashing situation that can arise in the future. Therefore, it is crucial to list all your concerns before renting your property.
8. Follow the rules strictly
You must first adhere to the rule of agreement if you expect it from the tenants. Any leniency from your side will only result in your exploitation. If your tenant does not make a payment on time, don’t hesitate in knocking them. Although in some situations, you can allow a grace period for paying the rent, beyond that time, you must take strict actions. If you respect and abide by the rules, your tents will do the same.
9. Online collection of payment
Collecting payments online provides transparency in transactions. Moreover, it prevents the stress that arises due to the forgetfulness of tenants for making payments. Sometimes checks get stuck or even get into the wrong hands. This can be dangerous for tenants because their bank statements might get leaked. Therefore, practicing online money transactions is the safest, fastest, and easiest method for tenants and owners.
Owning a property and renting one are two different sides of a coin. You solely need to pay for its maintenance when you own a property. On the other hand, when you rent it, you need to consider a wide array of situations like setting a competitive rate, searching for prospective tenants, doing the proper screening, documenting an agreement, etc. Although profitable, it needs time and experience to give a handsome Landlords.