A Quick Guide For The New Landlord

If you are thinking about buying your first rental property, or perhaps you have somehow ended up with a property and have become a landlord by default, there are a few things you should do to ensure your transition to landlord goes as smooth as possible. Here is a quick guide of 8 essential steps every new landlord should take.

1. Develop a Solid Lease – Don’t just buy a generic form from Office Depot of cobble one together from the internet. Pay a lawyer to get one together. There are many differing laws out there. A lawyer will likely only cost you a couple of hundred bucks. It is well worth the expense as one misplaced word or one wrong clause may end up costing you days of your time and hundreds more of your hard earned dollars.
2. Develop Your Tenant Selection Criteria – What type of qualifications does a potential tenant need to have to rent your property? Do they need a job, a decent credit score, a clean criminal record? Will you allow pets or smoking? You need to decide now what those criteria are and WRITE THEM DOWN in case you are ever asked for them. And never base those criteria on the seven federally protected classes which are race, color, national origin, gender, familial status, age and religion.
3. Develop A Way To Screen Tenants – Tenant screening is perhaps the most important thing a landlord can do. There are professional tenants out there just looking to fleece a novice landlord. Protect yourself by running credit and criminal background checks. There are many screening services out there, choose one that runs both credit and national criminal background check.
4. Determine The Amount of Rent – How much are you going to charge? How will you determine that? This website may be able to help you. Another possibility is to look for properties similar to yours that are for rent and make some phone calls acting as a prospective tenant.
5. Determine The Security Deposit – How much of a security deposit will you require? The amount can often vary by local custom and law. Ask around to other landlords or the attorney who crafted your lease what is common in your part of the world.
6. What Are Your House Rules? – Do you allow grills? Who cuts the grass? What about the playing of music? Such things need to be WRITTEN DOWN and made part of your rental agreement with your tenant.
7. Figure Out The Best Method Of Advertising – Different areas rely on different methods of advertising their rentals. Some areas still widely use signs because that is how the tenant base finds the property. Other areas are more dependent on internet advertising such as craigslist. Whatever you determine, make your signs and ads look as professional as possible.   You can eliminate a lot of headaches by simply having a professionally made for rent sign or advertisement.
8. Treat Everyone In A Professional Manner – Landlording is a business, treat it as such. Your relationship with your tenants should be professional and business like. A little respect and courtesy can go a long way in this business.

So there you have it. Follow these 8 tips and you should be well on your way to a successful landlording venture, no matter what your reason is for getting into it.