When owning rental property for cash flow and appreciation, it is crucial to know the proper way to run your business. A Texas-based property management company has some of the best 6 Do’s And Don’ts Of Landlording I’ve seen
6 Do’s Of Landlording
Knowing the Delaware Fair Housing and tenant laws could help you avoid unnecessary legal issues as you grow your investment portfolio. As a new landlord, take note of these tips from those who’ve been successful in the business.
1. Do Screen Tenants
– Before you enter into a lease agreement with a tenant, it’s essential to learn all you can about them. At a minimum, you should know a prospective tenant’s rental history, eviction history, and why, whether they pay their other bills, and if they have a stable job history. WorryFreeTenant landlords can list their properties, screen tenants, and connect with prospective tenants from one easy to use dashboard. It’s always free.
2. Do Make Policies and Stick to Them
– Your lease will outline when the rent is due and the tenant’s general rights and responsibilities.
3. Do Outsource
– You will quickly realize that landlording isn’t easy. The good news is, you don’t have to do everything on your own. Outsourcing the duties you don’t enjoy will help keep you from getting overwhelmed and giving up before reaching your goals.
4. Do Be Professional
– As a landlord, you want your tenants to treat your property as they would their own. One of the best ways to do this is to show them you take your business seriously.
5. Do Respect Tenant’s Privacy
– You know a lot about your tenants because you did a background check before renting them a home. That information needs to stay confidential. Before you release any information about a tenant, get a signed release from them documenting the information.
6. Do Place Limits on Pets
– Pets are part of the family for many people. Essentially, being pet-friendly can be an asset, but being too pet-friendly could cost you a lot of money. Instead, place limits on the type and size of pets you’ll allow.
6 Don’ts Of Landlording
You have a screening process and clear policies in place to avoid unnecessary risks. In addition to all the things that are important for you to do as a landlord, there are several things you should avoid.
1. Don’t Rent to Family or Friends
– Rarely does doing business with family and friends end well.
2. Don’t Make Friends with Tenants
– There’s a difference between being friendly and being friends. Being social will help your tenants see you as a real person who deserves respect.
3. Don’t Own the Property in Your Name
– If you’re going to manage your rental units, you shouldn’t own them in your name. Owning rental property in the name of a corporation or LLC allows you to claim you don’t have the authority to make decisions and therefore need to ask someone else.
4. Don’t Chase Rent Checks
– If you screen your tenants thoroughly, you should know whether they’re going to pay their rent on time before they move in. Make your policy clear at lease signing and give tenants more than one option to pay you.
5. Don’t Attempt to Do Repairs you Aren’t Qualified to Do
– Having people you can call to complete work quickly will help you look professional in the eyes of your tenants and convince them they made the right decision to rent their housing from you.
6. Don’t Invest all of your Time
– Being a landlord should result in positive cash flow if you do it right. Use some of this extra money to take time off and enjoy yourself. Your tenants aren’t going to miss you if you take a week or two off in the middle of the month.
6 Do’s And Don’ts Of Landlording
You are bound to make mistakes as a landlord; you don’t want to make mistakes that will put you out of business.
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