How to be a Successful Landlord
Property ownership is a great way to generate income and wealth. However, being a landlord has its challenges and property owners must be ready to invest the necessary time to be successful. As a property management company San Diego landlords trust, we at Harland believe the following tips will go a long way to making property ownership profitable, fun and successful.
Screen Your Tenants
Successfully managing a rental property starts with renting to the right tenants and the biggest mistake a landlord can make is to fail to conduct a credit and rental history check. No matter how nice, professional and polite prospective tenants may seem, failing to do a credit and rental history check can leave you with a lot of financial and emotional stress.
Have a Good Lease or Rental Agreement
Having a written lease agreement for your rental property is a must. And simply downloading a free online copy from a website is calling for trouble. Hiring a real estate attorney to write up an agreement can save you a lot of money in the future. A good leasing agreement clearly states the rights and responsibilities of both parties in detail to help avoid a lot of headaches before the first tenant even walks in the door.
Fulfill Your Obligations as Landlord
Keeping up with repairs in a timely manner is one of the most important duties a good landlord will do. Is the lawn mowed on a regular basis? Is all the plumbing in working order? If the landlord isn’t knowledgeable in plumbing, carpentry, and electrical issues, he or she must have a good handyman available at all hours who is.
Reward Good Tenants
Although a good landlord needs to be firm and stand up to tenants who are not abiding by the rules, being too gruff will not give the tenants any motivation to do their part. Tenants who always pay their rent on time and never cause any problems should be rewarded periodically to show they are appreciated. Even something as basic a gift card to a local grocery or popular restaurant will go a long way to building a positive relationship.
Having full rental insurance and property liability insurance is a necessity. All it takes is one lawsuit, fire, or accident to create devastating losses a landlord might not recover from. A landlord must also have money put away for unforeseen costs and repairs that insurance may not cover.