The renting market is booming. More and more people are investing in properties and becoming landlords. There are certain things that every landlord needs to think about before taking on a number of tenants.
Here are seven important things to consider when you’re a landlord.
- Property Owners Insurance
All landlords need to be covered by property owners insurance. This is a form of insurance that protects landlord or property owners from claims that are made against them. Usually, these claims revolve around property damage caused by third parties as a result of the landlord or home owner. They can also be made if a tenant gets injured due to issues with the property itself.
- References for Your Tenants
Referencing is important to obtain before you accept any new tenants. Having poor tenants can add unnecessary hassle. They might pay their rent late (or not at all) or adopt a dog that shreds the wallpaper. Gaining references means you can check what they have been like a tenant for previous landlords. They act as a form of background checks and allow you to check that the potential tenant has the funds to afford renting your property.
- Tenancy Agreements
Contracts are essential for all landlords who are renting privately to tenants. When the agreements of the tenancy are written and signed by both parties, everybody is covered by law if anything goes wrong. Tenancy agreements can be either fixed term (where the contract runs for a set period of time) or periodic (sometimes referred to as ‘rolling’ whereby the contract runs week by week or month by month). They will always specify the price of the rent.
- Tenancy Questionnaire
You should always ask the potential tenant a number of questions to learn a little more about them before agreeing to a contract. Questions you can include in the questionnaire are
- Who are you moving in with?
- Why are you moving?
- What is your yearly salary?
- How long do you plan on staying in the property for?
As a landlord, you may want to regularly check on your properties to ensure they’re being kept in good condition. Even with the most respectable tenants in the property, wear and tear happens over time. The paint could be scratched, the carpet might need replacing, or the washing machine may be broken. Keeping up with these maintenance jobs throughout the year means you are left with a lot of repairs and replacements at the end of the year.
- Moving In and Out Inspections
After each tenant moves out of a property you own or manage, you must always carry out inspections. This is so you can check if they have damaged the property in any way or left it in a mess. The condition that the property is left in by the tenants will affect how much of their deposit you give back to them.
- Handling Complaints
As a landlord, you will get the occasional complaint. Ensure you are proactive in your approach when it comes to dealing with tenant complaints. If you act quickly to resolve their issues, they are more likely to stay renting with you and spread positive reviews about you. This can in turn boost your business and keeps both parties happy and satisfied.
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