How to Be a Successful Landlord. A rental property can be a profitable business investment if managed effectively. Being a landlord involves numerous financial and legal obligations. Before taking the plunge into real estate investment, consider the various activities you will perform and decide if you have what it takes to be a successful landlord. Read on to learn more.
Things You'll Need
- State landlord tenant laws
- Federal Fair Housing Act
- Tenant background check service
- Lease agreement form
Learn and follow your state's landlord tenant laws. Each state has its own laws and guidelines for both landlords and tenants. The Nolo website has links to the various state laws. Also, become familiar with the federal Fair Housing Act that prohibits discrimination.
Protect your asset. Get rental insurance to cover damages. Consider purchasing a homeowner warranty that pays for certain repairs. Set aside extra money to pay for unexpected expenses.
Select tenants carefully. A poor tenant can make your landlord job difficult by failing to pay rent or destroying your property. Interview potential tenants and check their credit history and references. However, be careful not to discriminate and violate Fair Housing regulations.
Create a written lease agreement and ask all occupants to sign. Ensure that the lease includes all terms of the rental such as who pays utilities. Search the Internet to find sample forms.
Maintain the property. Landlords have a legal obligation to maintain their property in livable condition. Eliminate potential hazards and security risks before the tenants move in. Be responsive to tenant requests and make repairs in a timely manner.
Stay in touch with your tenants. This will ensure you become aware of any needed repairs and spot potential red flags. However, you must comply with tenant privacy laws when entering the premises.