Are you ready to become a first-time landlord? Becoming a successful landlord takes lots of knowledge and hard work, but the rewards can be great. Whether you’re looking to supplement your income or are interested in diversifying your investments, understanding what it takes to rent out property successfully is the key!
In this blog post, we’ll cover five important things you need to know when becoming a first-time landlord. With this information, you’ll have all the tools you need for success and will no longer feel overwhelmed by taking on the duties of being a landlord. Read on to find out how easily you can transform into an expert in rental properties!
Use a Letting Agency
The first tip for anyone who has just become a first-time landlord or is considering becoming a landlord is to use a letting agency. For example, letting agents Bangor can be incredibly useful, especially if you are a first-time landlord; they can guide you through every process and procedure valid in the area.
More importantly, they will act as a middleman between you and the tenant and ensure that everything runs smoothly. If the tenant is unable to pay rent, the letting agency will ensure you are paid. They will also be able to find high-quality tenants you might not be able to find yourself.
Vet Tenants
The next thing you need to know about being a landlord, especially if this is your first time, is that vetting tenants is of utmost importance. One of the biggest mistakes many first-time landlords tend to make in their excitement of having a tenant is just allowing anyone to rent the property.
You need to understand that tenants generally won’t care as much about your property as you will since, after all, it is not theirs. You need a full background check to find out as much as possible about potential tenants before you allow anyone to move in.
First, you should always check their credit history to ensure they pay rent on time. Second, you should also try to find out about their renting history. Do they damage the property? Do they look after it? Are there any noise complaints?
Set a Reasonable Price
Another thing that you should know as a first-time landlord is that if you want tenants to move into your property, you’ll want to set a reasonable price. This is actually where having a letting agency is very useful since they will be able to price your properties accordingly.
Setting a reasonable price plays a large role in the tenants you find. For example, as mentioned above, if you set the price for rent far too high, you won’t attract any potential tenants. If you set the price far too low, you might just allow anyone into the property that might otherwise damage it or not be able to afford the upkeep. You need to find a good balance between making a profit and attracting tenants.
Have a Thought-Out Rental Agreement
One of the most important things you’ll need to know about being a landlord is that you need to have a thought-out rental agreement. As mentioned above, using a letting agency has multiple benefits, one of which is thought-out rental agreements that cover just about anything.
Of course, with your rental agreement, you should not be tyrannical but reasonable. If you don’t want any parties happening after 10:00 PM, you could set a rule that tenants may not have more than 3 visitors after 10:00 PM.
Don’t Treat Tenants as Friends
Finally, the last thing that you need to know as a first-time landlord is that treating tenants as friends can have negative consequences. Being a landlord is almost like running a business. If you are too friendly with your tenants, they may not respect your boundaries or rules. They also might look to take advantage of you, especially in terms of paying rent. However, with that being said, you also need to be a responsible landlord and be available to your tenants whenever there is a problem.
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