Top Tips for Landlords Renting Properties

Thousands of people across America invest in properties to rent out, but if you’ve become an “accidental landlord,” what’s the correct approach to take?

There is potential to go on and acquire thousands of units, providing you’re successful on your journey. Becoming a landlord is a sound investment and will create a stable revenue stream to keep you afloat. Regardless of how you became a landlord, you’re probably wondering how to operate effectively.

To help you en route to successful letting, here are some top tips for renting properties:

Once you’ve found an appropriate tenant, or they’ve found you, it’s important to engage in a screening procedure to ensure tenants meet your requirements. There are various free tenant screening processes to help achieve your objectives, and involving a professional provides additional confidence. Ask for evidence of their last 3 years residence, their Social Security number, next of kin, and birth date. Receiving a copy of their driver’s license and birth certificate is desirable but not essential. Providing they are who they say they are, you can proceed with confidence and peace of mind. To assist with the screening process, carry out reference checks to confirm the details provided.

The next step is to ask your tenant for a guarantor, a safety blanket to fall back on if your tenant can’t fulfill their financial commitment. If they’re in arrears for rent, the guarantor will cover the money required, meaning you won’t be adversely affected by their financial woes. Ensuring the guarantor is in stable employment is a good idea, and this can be achieved with credit checks.

Take a deposit of at least six weeks’ rent, since this will cover any damages discovered at the end of tenancy. The last thing you want is to pay for someone else’s mess, so a sufficient deposit will cover this eventuality. Once you’ve received a deposit, protect it in a relevant scheme, and ensure all invested parties are given a copy of the certificate and agreement. Once you’re happy, get a signature to confirm tenants have received the information they need to proceed.

Do not hand over the keys until the tenancy agreement has been signed; otherwise, you might be at risk. Obtain photographic evidence of the inventory, and gain a signature from tenants consenting to the inventory present. Make sure there are smoke alarms on every floor, an essential step for safety.

Once everything is in place and your tenants are ready to move in, most of the hard work has been done. Hopefully you won’t have to hunt down the rent, but stay on top of things, adhere to any reasonable requests, and visit the property regularly to ensure upkeep is attended to.