5 Tips For First-Time Landlords
In today’s real estate environment, more single-family homeowners are becoming first-time landlords. If you’re thinking about renting out a property for the first time, consider these 5 tips as you get started:
- Start updating your property – An updated and clean home will not only increase the likelihood of finding a tenant, but it will also allow you to charge a premium rental price. Make sure all rooms are freshly painted. Look at your electric and plumbing; fix any leaks as well as replace all burned out light bulbs. Install smoke detectors, buy a fire extinguisher for the kitchen and install a carbon monoxide detector if the house does not already have one.
- Notify your accountant – Call your accountant or financial advisor to let them know you’re renting a property. They’ll have tax advice and may be helpful in setting up auto-rent collection process
- Change Your Homeowner’s Insurance Before your new tenants move in, you must have property insurance specifically for a rental property. Check out all of the options and consider additional liability coverage if necessary.
- Determine who’s going to manage the property – Property management firms typically charge a percentage of the monthly rent for their services, but they handle everything from collecting rent to managing repairs. Many will help find tenants for an additional cost. The services may be worth considering.
- Decide on the Rent – There are multiple online websites and tools that will help you determine what the rental market for your property will bear. Use these resources to property price your rental, to maximize your rental income.
The information on this page is provided for informational purposes only and does not constitute investment, real estate, or legal advice. This information should not be regarded as a recommendation or an offer to buy or sell any product or service to which this information may relate. No representations or warranties whatsoever, express or implied, are given as to the accuracy or applicability of the information contained herein. The information may be modified or rendered incorrect by changes in the marketplace or developments in the law, or for any other reason, and may not be applicable to any individual reader’s facts and circumstances.