What New Landlords Should Know

Being a landlord can be a good way to make extra income and occupy a building that might otherwise remain vacant, which could run the risk of becoming a blighted property. But being a landlord is also a big responsibility that requires a lot of time, money, and other resources to keep the property in good shape.

If you’re a new landlord, there are a few things you should do before you rent out a property. Read on to learn more.

Know your rights. Both landlords and tenants have their own respective rights; read up on landlord-tenant laws so you know what each side is entitled to before you advertise the space.

Decide on a price. Do your homework. Research similar properties in your area to determine a fair price for the monthly rent.

Set limits.  You can determine what tenants can and cannot have in the residence. For instance, will you allow pets? If so, how many? What kind?

Advertise the property.  Depending on where you live and what kind of residence you’re renting, you may want to casually mention your vacancy to friends or family and ask them for referrals first.  If you don’t get much interest or aren’t happy with the folks you do speak with, widen your search by posting your vacancy on social media or different property rental websites.

Screen potential tenants. Keep in mind that by being a landlord, you’re opening yourself up to a host of personality types when it comes to potential tenants. Protect yourself and your rights by screening each applicant—usually a background check and credit check will suffice, although some landlords still ask each applicant for references.  You can never be too careful about who you take on as a renter, so you want to make sure you’re doing the necessary due diligence to protect your rights as a landlord and your property.

Customize each lease. You can work with an attorney or property manager to draw up a lease, or save yourself some money and download a customizable template. In it, clearly state the terms and conditions of renting the property as they were explained when you agreed to take on the tenant. You can choose to negotiate the terms of the lease at renewal or keep them the same.

Inspect property regularly. The landlord-tenant relationship goes both ways—just as you have certain expectations of your tenant, they have certain expectations of you as their landlord.  A big part of that is doing routine maintenance and tending to any unexpected issues that pop up. Some problems may be able to wait; others, not, but you should respond to any maintenance calls as quickly as possible.

What other tips would you add for new landlords? We’d love to hear from you in the comments below!