With house prices beginning to recover and rents on the rise, especially in cities like Dallas and San Francisco, more and more people are wondering whether it’s worth renting out their properties. The current upturn in fortunes, especially since the Trump victory, is creating a wave of new people interested in entering the market.
But becoming a landlord and renting out property is a little trickier than you might think. Here is some helpful advice to help you get started.
Take Out References On Potential Tenants
As a landlord, your biggest liability is your tenants. Get the wrong tenants, and you risk losing rental income, having all your furnishings stolen and dealing with the courts. It’s a good idea, therefore, to vet your tenants before allowing them to move in. There are all sorts of companies out there who can provide references about certain tenants, based on the experience of other landlords and agencies. David Salusbury, the chairman of the National Landlords Association says that it doesn’t take much to make a phone call and to check whether a person is who they say they are.
Decide Whether To Work With An Agency
If you’re a novice landlord, it’s a good idea to approach a property management company that can help you with various aspects of renting a property. Agencies are able to do things like advertise your property, as well as check up on tenants and make sure that they are who they say they are. If you choose an agent, just make sure that they are accredited and affiliated with the right regulatory bodies.
Customize Your Agreement
Landlords can get dozens of generic tenancy agreements straight from the internet, but they shouldn’t rely on them ensures, at least according to Salusbury. He says that landlords need to customize their agreements so that they reflect the nature of the property they are trying to rent. Different properties have different idiosyncrasies which might not be catered for by a generic agreement. For instance, some landlords might specify that it is the job of the tenants to keep the garden up. Salusbury also suggests that landlords get their properties professionally cleaned when a new person moves in. “Everybody’s idea of clean is different,” he says.
Speak With Your Insurer
Although the rented property will be filled with your tenant’s possessions, as a landlord, you’ll still be responsible for all the fixtures and fittings, as well as any equipment you install, like a fridge or a washing machine. Experts recommend that you speak with your insurer so that your premium covers the contents in the case of theft by either a third party criminal or the tenants themselves.
Spend To Make The Property Tempting
Experienced landlords know that they can snap up tenants quickly by making a property a tempting proposition. They’ll do things like install new carpets and put a fresh lick of paint on the walls. Making sure that you’re targeting the right market is important. Remember, students might put up with shabbiness, but parents might see it as a health threat to their child.