All things said and done about hiring a Property Management Company to manage your real estate investments, it is not possible for everyone to hire one. For NRIs, it becomes almost unavoidable to not hire a property management company, be the property in Mumbai or any other city in India. It is not the same if you are staying in the same city where you have invested.
However, every property owner likes to be a great landlord, as that is what extracts great tenants. And having great tenants means the property is in good hands, well taken care of and nevertheless the rents are paid on time without any difficulty. Being a great landlord also means a low tenant turnover rate as the occupants prefer staying in the property for a long time.
But as a landlord, dealing with tenants is kind of like knitting. It requires a lot of learning. Well, if you are a newbie in this and looking for landlord advice, you have come to the right place. Here is a list of the top 21 tips from experienced professionals all over the country for landlords.
- Use a Property Management Software to streamline necessary tasks like list screening tenants, signing leases, collecting payments and handling maintenance requests
- Many landlord overlook this, but make sure that your tenant has Renters Insurance
- Keep a documented proof of your property’s condition before the tenant moves in and when he moves out
- Though, Municipalities have different regulations regarding what to do with the security deposit made by a tenant, it is important to keep the security deposit separate and not mix it with rent received
- Have a well crafted lease by including things like rent, property usage, repairs, inspection, maintenance, conflict resolution, termination and eviction
- Research the market and set the rent amount reasonably
- Getting repairs done promptly not just saves your property from more damage, which saves money, it also prevents landlords from having the tenant claim remedies under the law
- Schedule regular property inspection to keep a closer eye on your property
- If you are allowing your tenant to keep a pet in your property you need to have a strict pet clause as part of your rental agreement
- Screen tenants thoroughly to save the cost of tenant turnover which is likely their biggest expense right after mortgage interest and property taxes
- Take advice from experienced landlords by joining an investment group, be part of a forum, and meet like-minded individuals and learn from their mistakes
- Consider cash for keys instead of an eviction to avoid the often time consuming legal process of filing an eviction with the court which can take months.
- Do not mix family and friends with your investment property business as no matter how wonderful it may be in the beginning, they will expect more for less from you
- Use small business accounting software to keep you organized and up to date with your business activities
- Work with a Real Estate specialised attorney so they’re familiar with the law
- Having the proper landlord insurance is vital as it helps to protect your investment from the expense of lawsuits and/or property damage
- It is important to know Local Real Estate Laws and Regulations
- Choose quality renovations as that will lead to rent increase and more quality tenants
- Rental properties provide a good opportunity for investors to take advantage of tax benefits and deductions by writing it off as loan fees, mortgage interest, utilities, maintenance and more
- Treat being a landlord like a business where rent is your income and property management fees, repairs and taxes are all your expenses
- Just because you can do something doesn’t mean you should, you should know when to outsource a particular job
We hope these tips help you make landlording much less of a headache than it is for others.