There are currently 10 million landlords in the U.S., and this number is expected to grow in the coming years.
As a new landlord, learning the latest tips is key to protecting your rental and growing your portfolio. But figuring out the next steps can be overwhelming, especially if this is your first rodeo.
Sounds like your situation? Luckily, we've got the answers you're searching for. Here's how tips like rental analysis can benefit you as a first-time landlord.
Do Your Research
Before figuring out investment returns, do your research. If you haven't yet bought the property, decide where the best area is and whether it will consistently attract applicants.
Already bought the property? Then, get it tenant-ready by completing essential repairs and decluttering the space.
Set a Competitive Rent Price
To calculate how much you can charge for rent, carry out a local rental market analysis.
Start by looking at similar properties on the market and see how high the rental prices are. This will give you a ballpark figure to work with. You should also consider your property's USP and if you can charge more. For instance, it may be in a premium location or have amenities other properties lack.
Your goal is to strike a balance between being affordable while generating a profit, so you can grow your portfolio.
Screen Tenants
Once you've conducted a property analysis, you can screen tenants. Although time-consuming, screening tenants is essential as it lets you spot potential red flags that could damage your rental. During the process, ask applicants for a credit report, references, and proof of employment to ensure they can pay rent on time.
As it can be overwhelming for first-time landlords, hire a property management company that can do this for you.
Treat Your Rental Like a Business
Many first-time landlords forget that owning a rental is a business. Stay on top of your finances and record any investments you've made in the rental, such as maintenance. You must also follow local and state laws to prevent legal issues.
Make Sure Lease Agreements Are Kept
The biggest concern is checking that the tenants aren't breaking the lease agreement.
This is a written contract that outlines the terms and conditions of the rental, which protects you and the tenant. The document should detail the lease duration, rent amount, and security deposit requirements. It should also detail how you will handle disputes or violations.
Aside from the document, your property manager will communicate with the tenant and relay any queries, so you're both on the same page.
Rental Analysis: How Our Tips Can Help You
From rental analysis to penning a lease agreement, these basics will help you get started.
At PMI Metroplex Properties, we understand that landlords struggle to manage their properties alongside their daily responsibilities. Because of this, it's our goal to oversee their investment and ensure that both landlords and tenants are happy.
If you have a rental in Bedford, Texas, that needs managing, we'd be happy to help. Reach out to us and chat with a member of our team.
