Taking on the responsibilities of being a landlord can be a challenging task. Understanding were to start can be overwhelming if you do not have the right tools to help guide you. Companies like MCB Homes Inc. work to minimize the stress of rental properties by presenting you with a fair, all cash offer for your home. These companies also realize that there are plenty of ambitious go-getters who want to delve into the world of renting out their homes. For those of you who are brave enough to take that leap, have compiled a list of things a new landlord should complete and take into consideration.
How Much to Charge
Base the amount of rent on the location of the rental property, the amenities that the rental property has, and any added incentives the rental property may provide to the tenant. Also, check with your state to see if they regulate what a landlord can ask in rent, deposits, and any other fees. An absorbent or unethical amount for rent will scare away potential tenants. While rates priced too low may interrupt your cash flow.
Provide a Written Lease that Includes the Terms:
A lease agreement is a legally binding document. It should be detailed with the clear understanding of what the landlord will provide to the tenant and the landlord’s expectations from the tenant. A few examples of items to list on the lease are:
Contact information for landlord or management company, property owner, and tenant. Give property information. Inform about the rent amount, deposits, and fees due. Inform about any policies and restrictions that the tenant must follow (smoking or pet policy). Advise concerning the lease termination clause.
Keep Detailed Paperwork
New landlords should always have a detailed file on the tenants that they have in their property. This will cut back on any type of confusion or misunderstanding. It is very important to keep the original lease, copies of legal documents, separate restrictive guidelines, and anything else that could possibly be needed in the future. The landlord will be doing a lot of property management, that means there will be a lot of dealing with the tenant. It is always best to have things in order in case of a dispute.
As a landlord, there is no need to be a cryptic entity that observes from the shadows. That could be make the tenant uneasy. Remember you are a person and so is the tenant. It is ok to have neighborly interactions. You can like the tenants that rent out your property. Where some may get hesitant is when thinking about litigation or if a problem arises. The solution to this is to make sure that you keep business separate. With a newly heightened sense of achievement (and a good understanding in the direction to go), you are ready to start that journey to become the best landlord ever. Keep in mind there are many more things to check off the list when considering renting.