Becoming a landlord comes with its responsibilities.
We thought it might be helpful to share some insight from experienced landlords with what they wish they would have known sooner.
Check out these 4 need to know tips for new landlords.
#1. Make Sure Your Property Is Safe
Safety should always be your number one priority for you and your tenants. Without a safe home neither your or your tenant will be able to enjoy it.
Smoke Alarms and Carbon Monoxide Detectors
Do you have the appropriate number of smoke alarms?
Are they placed correctly?
Do they have batteries?
Electrical System
Has it been inspected and tested?
Is everything up to code and working as it should?
Appliances
Whether your appliances are new, used or replaced, making sure they are clean and function properly before having a tenant move is essential.
Pro Tip: Check the little things too, like the lightbulb in the fridge.
EPC – Energy Performance Certificate
Having a valid EPC for your properties is crucial. Don’t take the risk by not having one provided by a Domestic Energy Assessor (DEA).
Landlord Insurance
Carve some time out to talk to your insurance company to see if you can add coverage to your homeowners policy. Can’t ever be too safe!
#2. Making Sure Your Bases Are Covered
Meet with an Attorney
Take the time now to meet with the professionals and comb through your rental application, lease agreement and any other documents you use. Doing this step NOW will protect your finances and prevent future headaches.
Plus, this will help if your tenants ask questions, you not only will be able to give them an answer right then and there but you will also have peace of mind knowing your answer is correct.
Thorough Background Checks
Have you checked everything you need to, to feel safe and comfortable knowing who is renting your property?
Have you used a reliable and thorough company?
#3. Make Sure Your Finances Are In Check
Do Not Be Dependent on your Rental Income
Being a landlord comes with some murky tenant territory. It’s best practice to try to expect the unexpected and be prepared for when things don’t always fall into place.
Such as late payments and unexpected expenses. It’s best practice to build your savings before you become a landlord. Relying on your tenants to be perfect isn’t the safest route to go. You want to be sure you can pay your bills on time even if your renters don’t.
#4. Make Sure to Do a Personality Check
Can You Handle Awkward and Uncomfortable?
Conversations with your tenants can be distressing at times, especially if it has to do with money such as late payments and especially eviction notices. It’s best practice to always keep a level head, be direct and try to avoid being confrontational.
The emotional stress that comes with being a landlord can be taxing if you don’t nip touchy conversations in the bud.
Landlords have to do a lot more than rent and collect rent. There might be times when manual and/or physical labor come to play. Ask yourself if you are ready for anything that comes your way. This is particularly important when it comes to your tenants moving out.
Did they leave furniture?
What condition is the home in now?
Do you need to clean or fix anything prior to the next move in?
Pro Tip: Before your tenants move in, walk around your rental home and property, document what is existing, take some photos, do everything you can to set yourself up for a proper move out inspection.
Being a landlord comes with a lot of responsibilities and tasks you might not have thought of before. Take the time out now to run through this list of 4 items to make sure you are as best prepared as possible.
Are you looking to save energy as a landlord? Save 30% on energy bills.
