Are you a new player in the investment property game? If so, there is a lot to learn about the process of being a landlord. There are a multitude of factors to take into consideration and as always, the more you learn, the better prepared you will be to handle whatever situations - or surprises - that may come your way. 

There are a few key ideas to familiarize yourself with as you venture into this new territory. Following these principles will help you make the most of your new business venture, and choosing to keep these ideas in mind will ensure your experience in the rental property market will be as successful as possible. 

Tip #1

Act Like The Boss

You might be a fun and generous person, but in the world of rental property you have to remember that this is an investment and the goal of owning this is to make extra income. And you are the boss. 

It can be hard to draw a line between landlord and tenant sometimes, especially if being a landlord is new to you and you only have a couple of properties. It can be easy to overstep your role as the landlord and try to be over-involved, wanting to know everything going on, in and at the house. 

But if you do not create some distance between you and the tenants, then it will be a lot harder to enforce late fees if rent is past due or to say no when they ask for an unneeded upgrade. 

Tip #2

Advertise In The Right Places

This is a digital marketing age and renters today are going online to find their next new place to call home. Create a well thought out advertisement with photos and all of the relevant information included. Things potential tenants will want to know: the property location, number of bedrooms, number of bathrooms and the square footage. Be sure to include any amenities that are included, as well as clearly stating if utilities are included in rent too. 

Tip #3

Set The Appropriate Rental Rate

Taking the time to do your homework and research the market area in your local neighborhood will pay off in the long run. It is extremely important that you set a rental rate that is appropriate.. If you choose to ask too much, you risk the unit sitting vacant, thus making no income. But...If you undercut yourself and choose to set your rental rate too low, then you will be losing valuable potential income. And since making money is the main reason most investors choose to purchase a rental property, leaving money on the table is counterproductive to your long term goals. 

Tip #4 

Know your Applicants

Knowing your applicants doesn’t mean that you have to already be friends or associates, it just means that you should gather all the information that is within the law to obtain, and learn about the people who may potentially end up living at the property that you have invested in. 

Requiring anyone interested in renting your place to fill out a rental application is well within your rights as a landlord. It is good to know your tenant’s rental history, employment history and credit history. Having them fill out this application will give you answers to many of the questions you will want to know.

Once they fill out the application, you will want to verify the information they gave you by doing a credit check, background check, and calling their employer to verify employment. You can also request copies of bank statements, showing deposits made from their employer to make sure they will meet the income qualifications you have set. 

The due diligence on this side of the application process, ensures that you have a well qualified tenant. You do not want to have a tenant in there who doesn't have a good payment history on their record, or who doesn’t make enough money to even pay in the first place. Once a tenant moves in, it can be a big headache to have to evict someone, so it is better to take your time during the screening process and choosing the best qualified tenant from the get-go.

Tip #5

Consider Hiring A Property Manager

Being a landlord is a big responsibility and takes a lot of work. If the idea of handling all aspects of the process - from advertising, showing, screening, leasing and maintaining the property - seems overwhelming to you, it might be the right time to reevaluate hiring a property manager. 

A property manager will handle every detail required to take care of the property, and you can choose to be involved as little as you want. Not only will it save you the stress of being “on-call” for all maintenance issues and other emergencies, but they are experienced in knowing the best way to handle most situations. Proven processes are in place, and their experience will pay off for you.

Consider these tips as you move forward in gaining knowledge in the rental property market. Having a solid foundation to build your rental business on will help you feel more prepared for whatever situation arises. 

If you own a rental property and would like to know more about how a property management company can take the hassle out of being a landlord for you, call us today at (417) 337-8081. Thousand Hills Realty  is the premier property management company in Branson, MO and we would love the opportunity to work for you!