Becoming a landlord can be an exciting new chapter in life. Not only can you get a steady stream of income if you do your job right, but you can also take on responsibilities you've never had before.
However, things can quickly go south if you're not prepared. This can sour the experience, so it's best if you do your research and step up as best as you can.
Here are useful tips for first-time landlords, including one on doing a tenant criminal background check.
Set the Right Rent
Rent's pretty tricky to nail down. If you set your prices too high, no one will come. But if you set them too low, you'll fill up your property, yet struggle to make a profit.
Conduct market research to see what other landlords are charging. Also, factor in all your expenses regarding the property. From there, you can determine a competitive rate that'll leave you in the green.
Have a Tenant Criminal Background Check Process
A background check for tenants is absolutely essential. Around 33% of American adults have a criminal record, meaning there's a good chance you'll get applicants who have offended before.
Keep your property and other renters safe by having a thorough tenant screening process. Just because they have a record doesn't necessarily mean they'll be bad tenants; it's up to you to detect serious offenses. If you need further help, we have three essential steps you can follow.
In addition to criminal background screening, you should look at an applicant's employment history and credit too. This will tell you if they're responsible or not.
Hold Regular Property Inspections
Property inspections are beneficial for both you and your renters. They can catch small problems before they grow larger, and as a result, you'll continue to provide a safe and comfortable residence.
Even if you have a new property, you should still schedule regular property inspections. Outside of those, respond promptly to any maintenance requests. This will put you miles above your competition.
Establish Good Relationships With Your Tenants
Many landlords struggle with turnover rates, which can cut into their profits. It's a costly and lengthy process to find new tenants, so be proactive about keeping your current ones.
Have an open and clear line of communication, and be responsive. Should you schedule work for the property, give your renters ample notice. And if there are conflicts, be neutral, keep calm, and try to be as fair as possible.
Do Thorough Landlord-Tenant Checks
Your property is a huge investment, so don't put your finances at risk by failing to do your due diligence. In addition to having a tenant criminal background check process, you should also set fair rental prices and hold regular property inspections.
Most importantly, make an effort to have good relationships with your renters. This will encourage them to renew their leases, which will push down your turnover rate.
Get in touch with us today if you'd like help with property management. We have a free rental analysis report that can help you price your property smartly.
