If you’re ready to take the leap into investment property, you may be thinking of all of those wonderful benefits that a rental income will bring to your financial portfolio. However, far too many enterprising individuals realize too late that they just are not landlord material. Rental properties represent a long-term commitment which requires constant care and vigilance. Without a smart plan and understanding, you could be setting yourself up for failure.
Here are some tips for being a responsible landlord:
- First, know your city’s codes and regulations and how they apply to your property. For example, are your doors, wiring, safety features, parking plan, and more up to code? If not, you may need some construction remodeling before your property is ready for occupancy.
- Get a lawyer to help you draft a rental agreement that is in line with your city’s laws. Likewise, your lawyer needs to educate you on all of the rules, regulations, and rights that apply to both you and your future tenants. Know about proper eviction procedures, your recourse’s for damages, and when and how you have access to the property for maintenance.
- Take care selecting tenants, while respecting anti-discrimination laws. Consider asking for references and conducting credit checks. Likewise, know ahead of time what your pet policy will be so that you don’t get unpleasantly surprised down the road. That perfect tenant on paper may not be so appealing if a virtual zoo accompanies them after the lease is signed.
- Understand that you can’t just buy a property, place a tenant, and that’s that. Your property will require regular maintenance and upgrades for which your tenant is not responsible. You’ll need to oversee your property to retain its value, and a general contractor can help with necessary improvements, like fresh paint or plumbing and wiring upgrades.
- You’ll inevitably encounter a bad apple tenant, but never let that turn you into a bad landlord. Treat your tenants how you want to be treated, which is by fulfilling your obligations for timely maintenance and repairs, while respecting privacy as well.
As you move forward in your investment property, remember that De La Riva Construction, Inc. provides experienced tenant construction, remodeling, and comprehensive general contracting services.