Since rental properties are far from small investments, it’s easy to see why so many investors want to maximize the success of their rentals. However, if you’ve never owned or managed a rental property, you’re liable to find yourself confused, frustrated and overwhelmed. As such, it’s important to do your homework before purchasing your first rental and taking on the role of landlord. Fledgling landlords looking to generate healthy returns with their first rentals will be well-served by the following qualities.
Adherence to a Screening Process
Tenants who are comfortably able to afford monthly rent are a landlord’s most valuable resource. In the absence of such tenants, generating a profit – or even keeping your property afloat – can prove exceedingly difficult. As such, you should make every effort to minimize your chances of taking on tenants who are unable and/or unwilling to afford rent. Depending on where your rental property is located, evicting tenants who can’t pay rent can be a long and arduous undertaking, so if you don’t currently screen rental applicants, now would be the time to correct this.
With each applicant’s permission, you’ll need to look into their credit history, income situation and criminal background. On the credit front, it’s unrealistic to expect every applicant to have spotless credit. Still, if an applicant is saddled with a seemingly insurmountable amount of credit card debt, you should give some serious thought on whether you want to take a chance on them. Secondly, it’s important for all rental applicants to have a consistent source of income that enables them to easily afford rent. In addition to requesting proof of income, it’s a good idea to get in touch with any employers an applicant lists. Furthermore, while past criminal convictions shouldn’t necessarily tank an applicant’s chances, it’s important to consider the nature of the offense. For example, if an applicant has been convicted of a crime that could pose a risk to other renters or the property itself, they may not make the best tenant.
You should also request that applicants include references and get in touch with any individuals they list. In the interest of getting the most accurate picture possible, prioritize employers and previous landlords over friends and family members. Some applicants list references under the assumption that landlords won’t follow up, so by taking the time to contact every reference, you can effectively thwart the efforts of applicants who are less than honest.
Attentiveness to Tenants’ Needs
In order to garner goodwill from your tenants and maintain strong renter retention numbers, it’s imperative that you be attentive to tenants’ needs. This means providing them with a phone number and email address at which you can be reached during the workday, as well as a number to call in the event of an after-hours emergency.
Since maintenance requests are among the most common reasons renters reach out to landlords, you’ll need to make a point of staying on top of maintenance. This will require you to hire knowledgeable, dependable maintenance personnel and process all maintenance requests in a timely manner. Regarding maintenance as an afterthought not only stands to draw the ire of your tenants, it can also cause serious – and costly – damage to your property.
Willingness to Make Necessary Renovations
If your rental is in desperate need of renovations, it’s recommended that you tackle them in a timely manner – especially if not doing so stands to compromise the property’s overall livability. When undertaking such work, take care to only hire contractors who are fully licensed and insured. Licensed contractors are able to pull permits, thus ensuring that renovations are completed in a safe – and legal – fashion. Florida-based property investors looking to maximize profitability would do well to carefully consider renovation costs when exploring Fort Myers real estate.
If you’ve never invested in a rental property, it’s easy to see why you might regard being a landlord as an easy job. After all, it seems like all of us have had at least one unaccommodating landlord who did nothing but kick up their feet and wait for rent checks to come in. However, if you’re looking to cultivate lasting success as a rental property owner, you’ll need to consistently put your best foot forward. First-time landlords who are eager to learn the ropes should familiarize themselves with the qualities discussed above.
