Investing in a rental property or converting your home into a rental can be an exciting challenge. But new landlords tend to prefer running the property themselves, which can cause problems.
New landlords can be caught unaware of the demands of running a rental property. Inexperienced landlords may also not be aware of the variety of tasks involved in keeping up the condition of their rental unit.
So, we at Real Canadian Property Management have put together this article to help all landlords avoid common mistakes when running a rental property:
Write A Lease Agreement
Having a signed rental agreement with your tenants can offer you protection in case a lawsuit is filed against you. Written contracts are binding given that both the landlord and tenants signed the document.
These leasing agreements outline the terms and conditions of the tenancy and they can offer guidance to renters. Without one, asking a tenant to comply with property policies can be tough. Leasing agreements must be made with care and must be legally compliant with State and local laws.
Inspect the Property Thoroughly
Renters are bound to stay for the long-term if the rental property is well-looked after. Although the bulk of the landlord’s responsibility falls on maintaining the unit and adhering to habitability laws, tenants also share in the duty of keeping the rental in reasonable condition.
As a landlord, you should perform regular property inspections. Some landlords even conduct preventive maintenance to catch minor issues early and save on repair costs.
The best thing about being vigilant of your rental’s upkeep is that tenants end up happy. Helping you avoid frequent tenant complaints. Property owners are expected to ensure that their rental homes are secure and meet safety standards.
Fill Any Vacancies
Vacancies are bound to happen when tenants move out and it can take a while to find new renters. So, landlords should have a contingency plan for when this occurs.
Getting your property to rent-ready requires maintenance costs as you tackle repairs and market your vacant unit.
So, it is advisable for property owners to have at least a three-month budget for property maintenance expenses. Setting up these funds will give you peace of mind when you are between tenants.
Screen Your Prospects
In a rush to land tenants, DIY landlords can often miss screening prospects thoroughly. This is a bad practice as it is essential to perform detailed background checking so you know if you have a quality tenant or not.
You can call up previous landlords to find out if their rental homes were treated well. As property damage can be costly, you want to safeguard against abusive and neglectful renters. It is best to minimize the risks by adopting a comprehensive tenant screening procedure right from the start.
Manage Your Time
Being a DIY landlord is a job in of itself. You need to schedule regular inspections and contact the right contractors for property repairs. If time is limited and you have multiple units to manage or working a demanding career, you might need the support of a property management company.
While being a self-managing landlord allows you to learn by doing, it can also hamper your effectiveness if you do not manage your time properly.
You may fail to address tenant complaints right away or respond late to important maintenance issues. As a landlord, your main responsibility is to weigh if you are allocating sufficient time to running your rental home.
Hire a Property Management Company
Running a rental requires the firm enforcement of policies, especially adherence to rent payment schedules. So, outsourcing to a third party for rent collection can be effective.
Property management companies do well as professional representatives of property owners. They have organized systems set up and can be strict in following the leasing agreements. They can also manage things like curb appeal, marketing, emergency maintenance, and eviction proceedings should a renter become abusive and refuse to pay the rent accordingly.
A Property Management company can also help you to process any and all of your taxes. Making tax season fair easier.
DIY landlords often fail to account for the huge costs of mistakes due to a lack of time and management experience. So, to avoid this and help build your property business, consider hiring a trustworthy property management company to oversee your rental operations and streamline systems.
Remember that your property investment should offer you consistent returns and time freedom. If not, then you may benefit from some help from an expert property manager like Real Canadian Property Management Solutions.
Call today at (780) 532 4900 to find out the different property management services they are offering. You can also send them a message at [email protected].