5 tips to lessen the headache of being a landlord
1. Always check references!
"Hiring" tenants to live in a property that you own is no different than hiring employees to work within your company. You want to find good quality tenants who will look after the property and uphold their end of the bargain. A really effective way to weed out potential bad tenants is to ask for references from their previous landlords. Unlike old employer references, there are no rules about what an old landlord is allowed to say when called for a reference check so you can usually get a truthful answer. Always ask if the tenants paid rent on time and if the property was in good condition when they moved out.
2. Always communicate to the tenants that they MUST report any issues or maintenance required at the property while they live there.
While it can be really inconvenient to get lots of texts or calls from tenants about issues with the property, it is a whole lot better than when something is left, the landlord doesn't know about it and it turns into a bigger issue.
If your cash flow allows, choosing to pay for landscaping can be a really nice perk. The other option is to have it included in the lease, clearly state that all grounds maintenance is performed by the tenants. If you want you can even make a deal with one tenant for a reduced rent to maintain the lawn and snow. Make sure the agreement for grounds maintenance is in writing so that if there is an accident, such as a slip on ice causing an injury, you can't be sued for being negligent in your maintenance duties.
4. Save every month for maintenance and vacancies.
Hopefully you are receiving a cash flow from your rental property(s) each month; however make sure that included in your cash flow is a savings of 3-5% of income. Inevitably, your property will need maintenance and it will also need to be vacant from time to time, whether due to low demand or time gaps between tenants. You need to make sure that you can cover the costs of maintenance and the mortgage when you need to. Not saving for these events can be catastrophic to your personal finances as you will be paying out of pocket if you are not prepared.
5. Find a local handyman to be "your guy/girl".
If you have someone who you can call to take care of maintenance issues as your go-to, it will save a lot of headaches when you are busy with everything else going on in your world and a tenant calls with a broken...anything. If you pay your handyman slightly higher than the market rate they will be more available for you. While it might be nice to pay someone a little less to do work for cash, this is not usually a good strategy when you want write-offs.
4. Save every month for maintenance and vacancies.
Hopefully you are receiving a cash flow from your rental property(s) each month; however make sure that included in your cash flow is a savings of 3-5% of income. Inevitably, your property will need maintenance and it will also need to be vacant from time to time, whether due to low demand or time gaps between tenants. You need to make sure that you can cover the costs of maintenance and the mortgage when you need to. Not saving for these events can be catastrophic to your personal finances as you will be paying out of pocket if you are not prepared.
5. Find a local handyman to be "your guy/girl".
If you have someone who you can call to take care of maintenance issues as your go-to, it will save a lot of headaches when you are busy with everything else going on in your world and a tenant calls with a broken...anything. If you pay your handyman slightly higher than the market rate they will be more available for you. While it might be nice to pay someone a little less to do work for cash, this is not usually a good strategy when you want write-offs.
By Lyndsay Gillon
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