Tips on Becoming a Successful Landlord
When you are dealing with tenants, you require a lot of patience because they come in all manner of personalities, perspectives, and demands. As a first-time landlord, the thought of managing property and people living in it might frighten you based on the horror stories you might have heard from other homeowners. Some of the reasons why you might be having second thoughts about renting out your property include: your tenants won’t pay rent, they will trash your house, they could make you go bankrupt and others will just drive you nuts.
The possibility of any of the above eventuality happening cannot be completely ruled out and you might find yourself overwhelmed due to the amount of work involved with managing tenants.
In order to have peace of mind, a manual with landlord tips that will help your tenants act in a way that is in line with your business model might come in handy. Fortunately for you, BuyRentKenya has just what you need. Read on to learn more about the landlord tips and how to become a successful landlord.
Rent Collection
Are you running around town collecting rent manually? You need to stop. Going to a tenant’s place to collect your rent is time-consuming. It is also an inefficient way to do it because it doesn’t help with your record keeping and it is not a safe option. You could have your tenants deposit the rent money to your business bank account or make online payments.
Business Systems
Just because you own one property and you’re starting out doesn’t mean you shouldn’t have systems in place. Having the right systems such as proper record keeping, updated accounting books, and having a customer database will help you with your time management, become consistent in your work, and will help you to achieve your goals. When you start building systems now, once you grow to own 5 or 10 properties, you will understand the importance of starting early.
Be Knowledgeable
To handle the challenges that you will face as a landlord in the future, it is good to have information that will help you deal with them. The best way to do so is to read a lot. You can find information on owning property and how to deal with tenants. Another way you can get help is by speaking to other landlords to find out what works and what doesn’t.
Create Policies
You can’t run a rental property from the top of your head and make rules as you go along the way. People will take advantage of you and do whatever they want when they figure out that you don’t have rules and guidelines in place. If your tenant has a copy of your policies, then they are aware of what is acceptable.
Quality Product
Offering a quality home and running your business in a professional way will make you attract the right tenant. Make sure you fix repairs as soon as possible, have open lines of communication with your tenant and stay organised.
Office Hours
Just because you are not in an office setting doesn’t mean you should be available any time. Set office hours for your tenants to know when they can and can’t reach you. People will start respecting your time once they know when they can reach you.
Outsource Repairs
If a tenant makes a complaint that he needs something repaired, you don’t have to always do it yourself. You can outsource the task to someone who is more experienced than you. You might want to save on costs, but you would rather do something correctly once than to always repeat doing it.
Tenancy Agreement
Create a tenancy agreement and have your tenant sign it before they move in. Make sure that you put in all the important information with the rules and guidelines. It will help you in the future to avoid any complications and miscommunication that may come up especially when it is time for the tenant to move out.
Deposits
Never let the deposits from a tenant to offset the rent arrears, unless they have vacated the premise. However, if the tenant is still living in your property, the deposit shouldn’t be used as a rent payment.
Late Fee
Tenant is late on rent payment for various reasons. It may seem like a cruel thing to do, however, charging a late fee will help you to collect your rent on time. If you charge a late fee, they will always make a point of paying early and will know that rent is a priority when they are aware of the extra late fee.
Family and Friends
Inasmuch as you love your family and friends, they are the worst people to rent out your property to. Reason being, they will expect favours from you. They might even decide to delay the rent payment. If you want to save your relationship with your friends and family, you will have to say no them when they ask if you have any available property.
These tips will help you become a successful landlord and avoid headaches. Which is your favourite tip? Leave a comment below.
