Whether you are looking to buy an investment property or are looking change your existing home into a rental property, there are some things you should know about becoming a landlord. Most people choose to become a landlord for the financial investment. By following these tips below, you can make being a landlord easier and more enjoyable for you all while improving your tenant’s happiness and rental contract longevity.
Provide a well maintained property
If you are looking to purchase a home as a rental property, you must consider the cost of improvements you will need to make to the property in order to make it rentable. While someone may rent the property in its existing condition, a home that is in good repair will help you maximize the rent you are able to collect along with ensuring the home itself does not develop additional issues from lack of maintenance.
Things to look for & questions to ask yourself:
- Is the caulking around windows, doors and siding maintained?
- Are your gutters cleaned and free from debris?
- Who is maintaining the yard?
- If you have a fence, is it in good condition?
When you are shopping for a rental property, ask yourself these questions:
- Will the home need an updated exterior paint job?
- What is the current condition of the roof?
- What is the condition of the crawlspace?
- How old are the appliances?
- Does the home have updated electrical?
- What could I update to make the home look its best?
- Typically a fresh coat of paint in the interior can make a home look more up-to-date.
- Add backsplash, tile or Beadboard wall paneling.
- Add crown modeling in the living room, kitchen or bedrooms.
- Add more lighting in the home.
- If the kitchen or bathroom is really dated, consider updating it with new appliances, vanity, cabinets or tile. You can also consider replacing the shower or bathtub.
The best part of buying an investment property is you don’t have to necessarily “flip” it to get it on the renting market. A few upgrades mentioned above can make a home nice without breaking the bank.
Eliminate Safety hazards
Want to avoid headaches, lawsuits or home insurance claims? Be sure to focus on eliminating any safety hazard from your property. From a liability standpoint, you will want to be sure that the property is void of any safety hazards such as loose railings, uneven walkways, cracked decking or faulty stairs. A well-maintained property will help you maximize your property’s profitability and keep your tenants safe.
Quickly address issues
When problems arise, and they will, it is important to quickly address them with your tenant. Some landlords choose to have rental management companies intervene, while others either do the repairs themselves, or ask the tenant to get it repaired and take it off the next month’s rent. If the issues is a safety concern, do not ignore it. If you are made aware of a safety issue and ignore it, you may be liable if something happens. Whatever your agreement is with your tenant, be sure to address repairs quickly. This may help mitigate additional damage from occurring.
Be available to your tenants
Being available to your tenants can help you develop longstanding renters who stay at your property for years. Since one of the largest risks of being a landlord is having a vacant property, the longer your renters stay, the more revenue your property can generate. By being a good landlord and available to them easily they will know you care about them and the property they are renting.
Being a landlord comes with risks, but also huge financial rewards. Following the suggestions above you can create long-standing renters who not only take care of your property, but help you build financial wealth along the way.
If you have questions about landlord insurance, call our agency. We can discuss all of your insurance coverage options when it comes to being a landlord. Call or email us for a free quote.