Being a landlord can be a lucrative job, but only if you know how to efficiently run and maintain your properties. Investors with many properties will often hire management companies to run their investments, but there are plenty of hands-on investors who need good advice on how to manage their properties effectively.
Require Renter’s Insurance
Landlords generally carry special landlord insurance that can help to make repairs to the property for damage caused by tenants. But there can be instances where your insurance would not cover the damage, but renter’s insurance would. Renter’s insurance is not expensive, and it is something that would protect you and your tenant.
Use An LLC For Your Property’s Legal Structure
One good idea that many landlords do not think of is turning their rental properties into LLCs. The guidelines for setting up an LLC are ideal for a rental property, and you will protect your personal assets from any kind of legal or financial trouble that might occur at your rental property.
Always Take Pictures
A landlord works hard to maintain their rental property, and sometimes it is frustrating to see the damage done by tenants. The process of getting tenants to pay for damage that exceeds their security deposit is made much easier when you take the time to document your property regularly using pictures and videos. Always time and date stamp your pictures and be sure to include detailed captions.
Never Wait To Do Repairs
When you lose a tenant, it is important to make your property repairs immediately. You might not have a tenant lined up to take over occupancy of your property, but you could wind up getting a tenant very quickly. Also, some types of repairs can become much worse if not immediately addressed. For example, water damage can turn into mold if it is not taken care of quickly.
Do Routine Inspections
When you do regularly scheduled inspections on your properties, you are accomplishing two things. First of all, your tenant knows that you will be coming to the property and hopefully that inspires them to do repairs and clean up. Also, you will be able to stay on top of any issues with neighbors or other potential property problems.
Only Do Business With Reliable Contractors
It is unrealistic to expect to be at your rental property each time you hire a contractor to repair or upgrade that property. It is important to take the time to make detailed notes of your encounters with contractors and to only do business with the ones that have earned your trust.
Running a rental property can be a challenge, but you can significantly reduce the amount of stress you experience by making good decisions and dealing with only reliable people. You should take the time to screen all of your tenants carefully, and do everything it takes to make sure your properties are managed efficiently.