If you are a new landlord, congratulations are in order! You are about to embark on quite the journey that can prove a lucrative investment for you and your family when done right. As almost any landlord will tell you, being one is not as easy as it may seem. There are leases to manage, repairs to make, and sometimes (though hopefully never) rent that goes unpaid. As a locally owned and operated Property Management company here in the Waco, TX area, we have seen and handled it all. To ensure that your new endeavor is a success, we strongly advise that you do the following:
1.) Treat your property like a business.
You need to be committed to providing your rental property with the care and maintenance it needs to ensure your home continues to grow in value and that your tenants are well cared for. Remember, when you treat good tenants well, they stay – which is exactly what you want to happen. Treating your rental property like a business also means that you should not rent out your Waco home to family or friends. Keep your personal and professional lives separate so that if any incidents occur, you can manage them from a place of clarity, without additional emotional stress.
2.) Screen tenants thoroughly.
It is vital to conduct a credit and background check and contact previous landlords, employer(s), friends, and family. Though nothing is foolproof, you want to be sure that the person (or people) you are renting to have a steady income and positive reputation so that you do not find yourself in a bind. Many people out there play “professional tenants” and know how to manipulate the system. By conducting a simple check, you can mitigate some of your risks. Note that screening a tenant is not the same as discrimination, which is never okay (and quite illegal).
3.) Make sure you are adequately insured.
Landlord insurance protects your rental home and you from financial loss. You must protect yourself and your investment by having a comprehensive policy. It is also crucial that your tenants carry a rental policy themselves to protect their assets (since yours will not cover a different place for them to live in an emergency, liability due to a dog bite, or the expense of replacing their belongings).
4.) List everything on your lease agreement.
Be as detailed as possible. Rent amount and collection dates, as well as your contact information, should be listed. Expectations about the care of your home, including pets, long-term guests, smoking, and decorating, should also be clearly stated. List insurance requirements, utility information, and anything else you feel necessary as well. Once your agreement is signed, you cannot amend it until renewal.
5.) Consider hiring a professional.
With over 30 years of experience, we ensure our landlords (and tenants) receive the very best care and service. Lease agreements, property maintenance and repairs, rent collection, marketing, and all that is in between, our goal is to ensure your investment continues to grow in value for years to come. Our comprehensive services are affordable, and our reputation, top-notch. We look forward to hearing from you! Learn more by contacting us today: 254-651-0576.
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.
