Bought a property recently? Planning on renting it out? It’s a simple fact that well-managed rental properties attract the best tenants, while laid-back landlords attract more problem tenants. Take an ‘all in, hands on’ approach to running your property rental business with these 5 smart strategies:
1. A deposit
There’s no over estimating how important it is for a landlord to obtain as much of a deposit as possible. 1 month is good, 2 months is better. The more security the landlord has by way of the deposit, the less chance the landlord has of his investment property coming back to bite him.
Find out everything you can about your prospective tenant. Play private investigator. Phone previous landlords, employers and conduct a credit check. Be very cautious of any red flags.
3. Visits to the property
Pay regular visits to your property and tenant. Develop a relationship with your tenant and show the tenant you are on top of your game and that no tricks can be pulled on you.
4. Credit control
Be onto your tenant like a ‘house on fire’. Invoice your tenant on time and expect payment on time. Do not tolerate late payments and thereby deter the establishing of negative payment patterns.
5. Lease agreement
Invest in a solid agreement prepared by an attorney. Make sure it’s fully signed and renewed in advance. Stick to it ‘like there’s no tomorrow’ sending a subtle message to the tenant that the law will be applied at all costs to the relationship.
The calibre of the tenant over the long-term will dictate the overall profitability of a rental property so keep these smart strategies in mind.