Many business owners aspire to expand into property, and becoming a landlord is a great way to add another stream of income to your enterprises. If done right and properly managed, your properties can be well tenanted and revenue generating. However, a stress-free rental is never guaranteed. Things go occasionally go wrong, and like any business you have to spend some time problem-solving. You can minimize the chances with a good tenanting strategy and a few of the right tips.
Focus On Upfront Vetting
It’s amazing how many landlords are lax about the checks they run on tenants prior to letting their property. It’s essential to seek references from previous landlords and run credit checks on prospective tenants. If you can, speak to previous landlords to find out what condition their property was left in, if there were any missed rent payments and why the tenant moved on. Don’t take anything at face value, or you may live to regret it. Always meet everyone face to face yourself or ask a trusted person to do so. And learn to trust your instincts about people – if something seems off it usually is.
Arrange The Right Insurance
Having the right landlord insurance policy in place is critical. You should make sure to include public liability cover as well, so that if your tenant suffers an accident on your property, or there is a break in – or even some kind of incident like a fire or a flood, there won’t be ruinous financial consequences for you. As an additional precaution, you can also take rent guarantee insurance. This will give you peace of mind by assuring you will receive payment even if your tenant defaults.
Keep A Close Inventory
Between each turnover of tenants, be sure to keep a close inventory of the condition of each property and any items supplied within it such as white goods. You may also want to call in a specialist such as stewarts drug testing to assess the property and ensure that no improper usage has taken place. Test all the smoke and carbon monoxide detectors, and make sure all the vents are clear. Hire professional cleaners to make sure the place is spotless and good to go for your next tenant.
Approach Your Rental Portfolio Like A Business
…because essentially it is! While managing your rentals isn’t your primary source of income, it’s still important to take the professionalism your businesses have given you and apply it to your endeavors in property as well. Make sure you’re following all the applicable laws and regulations, in order to avoid potential legal issues and establish a good reputation. That way, you will be able to attract great tenants, which is half the battle. When you do have good tenants, treat them well and fairly, with understanding. Minimizing turnover of renters saves you time and money as well as giving you peace of mind that your property is being looked after, so it’s worth being understanding if usually prompt tenants have a month or so where they need to delay the rent. Just as in other businesses, building great relationships is the key to getting the best out of a situation.