One of the best business ideas available is to buy a property and then rent it out. Not only do you then have a good asset for when you want to sell it and either buy something else or retire, but you will also have a monthly income that covers the mortgage and gives you a profit on top. It’s no wonder that many people have chosen to become landlords, especially since it can be hard to buy real estate, and therefore there are lots of people who want to rent instead.
Picking a decent property in the right location and paying the correct money for it is only the beginning when it comes to being a landlord, however. If you want tenants to stay for the long term, saving you any time when your property is empty, and you therefore aren’t making any money, it’s a good idea to be the best landlord you can be. Here are some valuable tips.
Customize the Lease
Once you have purchased a great-looking property and decided you want to rent it out, you will need to work with any potential tenants to create a lease that works for both parties. Of course, this isn’t strictly necessary – there are standard leases you can use – but by working through the lease and customizing it for the individual tenant who is hoping to rent from you, you can show them that you are listening to what they need, and ensuring that they are happy and comfortable in your property. By doing this, hopefully they will stay living there for a long time.
Items that might need to be customized in your lease include whether any pets will be allowed in the property, who is responsible for what when it comes to maintenance, and how long the lease is to last.
Allow Changes to the Property
Most of the time, if a tenant wants to make changes to the property, such as installing new carpets or redecorating a room, those changes will make a difference to the value of the property in the future. If the tenant is happy to install their own new bathroom or kitchen, or even simply make the yard look tidier by putting in a new patio or decked area, this is all going to be an advantage to you in the future.
Therefore, it is usually a good idea to agree to any changes that the tenant wants to make, although, of course, you should check that they will be using qualified people to do the work and that they have insurance in place. Not only does it show that the tenant is going to stay for longer, but it will save you money in the long term too. Plus, you’ll be proving you’re a good landlord to have.
Make Repairs in a Timely Manner
The tenant will probably deal with minor repairs around the house as a matter of course (or you could include this in your tenancy agreement), but more extensive repairs will be down to the landlord to fix. This is one of the main benefits for renters; they don’t have the same responsibilities as property owners. Therefore, you shouldn’t be surprised if you find you receive maintenance requests from your tenants from time to time.
As a good landlord, you should assess these maintenance tasks and carry out the repairs promptly. Again, this will help keep your tenants happy and content, but it will also protect your property, which needs to be carefully looked after as an investment.