If you are a new landlord in the Waco, TX area, congratulations are in order! The decision to purchase an investment property is a wise one, that if managed properly, can net you a big return over a lifetime. Here are 6 simple tips to make sure your real estate venture is a success!
Treat Your Rental Property as a Business in Order to Mitigate Risk
Sometimes when landlords have a residential property they are renting out on the side, they forget to manage it as a proper business, never obtaining the appropriate insurance coverage, or drafting a formal (and extensive) rental agreement. They even fail to conduct a thorough background check on tenants, all of which can prove costly in the long run.
Develop a Deep Understanding of all Applicable Rules and Regulations
You need to know what your rights are as a landlord, as well as what your tenant’s rights will be by law. This can range from a “wait rule” (wherein the landlord needs to provide minimum notice, say 24-hours, before entering the property), to information concerning maintenance calls, late payments, evictions, and a mandate for rental insurance.
Know What You Should Charge in Rent
It is important for you to factor in your Waco rental property’s value, your overall expenses, and the median rent within your neighborhood to develop a monthly amount that is both fair to the tenant and profitable for you. Potential tenants should always have credit checks conducted, and be required to sign a lease.
Enforce the Rules
It is strongly advised that you do not rent out your property to family or friends, as some landlords find themselves in a compromising position if things go awry. Regardless, it is imperative that you follow your own rules, moving forward with fees, penalties, and eviction per your lease agreement and law. If you do not remain consistent, or fail to meet your obligations, it can affect your profits long-term.
Maintain Exemplary Records for Tax Purposes
As a landlord, it is important that you maintain records detailing income, property information, and expenses so that you can note them within your tax return. Items to consider include depreciation, mileage, repairs, and insurance. You can also claim portions of capital improvements, such as a new roof or HVAC system, though not in its entirety.
Ask for Help
Navigating the day-to-day, and month-to-month aspect of a rental property can be a challenge even for the most seasoned investor. Hiring a property management company can help save you time, money, and potential headaches, ensuring your endeavor is both positive and profitable.
Here at Temple Property Management, we manage investment properties across the Waco and Central Texas area for new landlords through to the most experienced, navigating each and every aspect with ease. Learn the value we can bring to your property by reaching out to us today: 254-651-0576. We would love to hear from you!
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
