What to Know About Being a Landlord
The idea of making extra money from a vacation home or real estate investment is very tempting. But being a landlord requires more than just collecting the monthly rent. Many different laws regulate the way that landlords must deal with their tenants. Also, landlords need to have a good head for business in order to succeed.
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Maintenance
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The phrase "A stitch in time saves nine" is meaningful for a landlord not only financially, but also in his relationship with tenants. By fixing a small problem, such as plumbing or electrical issues, before it grows into a bigger one, the landlord can save money and meet his obligation to his tenants to provide a safe place to live.
Finding Tenants
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Landlords can often find tenants by placing advertisements for the home or apartment in newspapers and on specifically designed websites. The description given by the landlord of the property needs to match what potential tenants find when they come to see the property. Also the law prohibits any discrimination on the part of the landlord in selecting tenants.
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Credit Checks
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A landlord can obtain a credit history of the applicant to ensure that she can pay the monthly rent. When a credit history is unavailable, the landlord can have conversations with her previous landlords. As an alternative, utility companies can confirm if the prospective tenant paid her bills on time or not. Finally, if locating a credit history proves fruitless, the landlord can ask the applicant for references or canceled checks showing payments.
Tenant Contact
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A tenant who is treated well by her landlord is usually more apt to pay the rent on time. Communicating often with a tenant is one way of cultivating a positive relationship. It is also a good way of staying aware of her future plans, including her thoughts on extending their lease or leaving the property. This information can help a landlord to better manage his rental by keeping a tenant on the property at all times.
Property Condition
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The condition of the property should be documented both before a tenant moves in and after she moves out. This makes both parties aware of what damage predated the tenant's occupation and can help the landlord determine if any damage was caused during her stay.
Landlord/Tenants Disagreements
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Resolving disagreements between landlords and tenants does not always involve lawyers. Sometimes, discussing the issue calmly at a meeting can solve the problem without involving outside parties. If such a meeting fails to settle the problem, another approach may be to call in a professional mediator to help resolve things.
Get Everything in Writing
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Preparing a detailed lease agreement benefits both tenant and landlord. Items such as security fees, length of occupation, the amount of the monthly rent, and landlord property maintenance, are all very important issues to both parties and should be agreed upon in writing before the tenant moves in. If such an agreement does not exist and a dispute between the parties occurs, the legal costs of resolving the dispute could be quite high.
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