6 Essential Tips for First-Time Landlords
Guest Post by Lucy Cromwell
Taking the leap into becoming a landlord for the first time can be exciting. However, it can also be nerve-wracking - especially when you’re new to the process.
If you google ‘tips for first-time landlords’ you will be inundated with information and it’s fair to say that all the advice can feel pretty overwhelming.
We like to keep things simple. That’s why we’ve put together this article sharing our essential tips for first-time landlords.
Let’s get started.
Treat Being a Landlord like Running a Business
The first and perhaps most important step as a first-time landlord is to treat becoming a landlord like running a business. While it’s unlikely to be your primary job, it is still an extra source of income, so it’s important to remain professional.
Professionalism goes a long way towards maintaining a positive relationship with your tenants, avoiding legal issues, and staying in control of your finances. It’s the best way to tackle your new responsibilities well and help things run smoothly.
Treating your role as landlord in a business-like manner also keeps emotions separate from decisions. This allows you to approach junctures in the process with clarity and purpose.
Ensure Your Property is in Working Order
Landlords have a duty to provide a habitable property that is safe and in good working order. Problems such as rodents, mold, and rot are things landlords should deal with before renting their property to tenants. If any problems with the property arise, it is your responsibility to rectify these as quickly and efficiently as possible.
Before renting out your property, you need to check the following are in safe and working conditions:
Appliances
Light Fixtures
Furniture
Windows and Doors
Plumbing
HVAC System
Smoke Alarms
Hot Water Tank
To avoid a lot of stress, we recommend having a plan of action. For example, what happens when the furnace breaks or a pipe bursts? A plan of action means that when difficulties arise, you know how to overcome them quickly and with minimal stress. With the help of a property manager, you won’t have to deal with these problems first-hand and can instead relax knowing everything is taken care of.
Top tip: ensuring you have the relevant contractors on call can be a huge help!
Hire a Property Manager
Becoming a landlord for the first time can be daunting. There is a lot of responsibility that comes with the territory and plenty of learning to do. However, succeeding as a landlord often requires experience and, as such, it can be helpful to hire a property manager.
Property managers are a worthwhile investment for landlords. Property management companies have a lot of experience with tenant screening and finding responsible tenants that pay their bills and take care of your property. They oversee the daily responsibilities of your property, from collecting rent to supporting tenants with any maintenance requests and other queries.
According to Investopedia, “Any property manager who doesn’t want to deal with the day-to-day management of property can potentially benefit from property management. This can include a residential property owner who doesn’t want the headaches of dealing with tenants, or commercial property owners who prefer others to source and manage tenants, leases, and maintenance.”
Hiring a property manager can be a great benefit to you as a first-time landlord as it ensures your property is professionally taken care of and managed on your behalf.
Maintain a Habitable Space for Your Residents
As the landlord, it is your responsibility to transform your property and maintain a habitable space for your residents. Whether you need to install fencing along the property’s boundary, repaint the walls, or fix the roof, you are responsible for maintaining your property to an appropriate standard.
Many people, when they hear property maintenance is needed, just see dollar signs. However, according to Southern Sheeting, property maintenance doesn’t have to cost the earth if you only invest in the right solutions first:
“It’s important to choose products that are strong, durable and resistant to rot, UV damage and pests. Using a steel gutter system instead of the more ubiquitous PVC variety, for example, will mean you’re less likely to experience cracking or failure at the seals.” Investing in the right materials and solutions in the first place can save you big bucks in the long term.
If you do not maintain your property to a habitable standard, it will be deemed ‘unfit for human habitation’ and you could be accused of negligence. This is a dangerous position for a landlord to find themselves in and could mean your property has caused an injury to a tenant or damage to their belongings - both of which could result in heavy penalties. So, taking the time to create and maintain a habitable space for your residents is vital.
Put Everything in Writing
Whether you’re looking to rent to family, friends, or strangers, it’s important to put everything down in writing. You should always have a written rental agreement in place to help outline your expectations and protect yourself in legal proceedings.
Even if you feel confident your friend or family member will quite happily live in your property and pay the rent required, an oral agreement simply won’t stand up in court. And no matter how much you trust a person, setting up a written rental agreement that is signed by both parties ensures everyone is protected and that the rules are understood.
We know it can be difficult to ask friends and family to sign contracts, but it is the best way to protect your rights and those of your tenants as you move forwards. This will avoid confusion down the road and the uncomfortable battle of ‘he said, she said’ if things get messy. Your property manager will ensure the relevant contracts are in place and will always notify you of things that are missing or that need to be rectified. So, rest assured nothing will be missed!
Keep Records of Everything
Just as you should put everything in writing, it is vital that you keep records of everything - from rent and maintenance receipts to conversations with your tenants. These records can be stored digitally (so, don’t worry - there’s no need to buy a filing cabinet just yet!) Your property manager can also guide you through this process and provide any support you need.
Keeping records of all your receipts and communications as a landlord is important as it can protect you should legal issues arise. It is always best to have evidence available that supports your claims - especially if/when a case is taken to court.
Managing your responsibilities as a landlord in this way takes us back to our first point: treat being a landlord like running a business. As you would with running a business, keeping records of everything is just common sense. It’s professional, organized, and keeps you up-to-date with every aspect of your property.
In Summary
We hope you’ve found our essential tips for first-time landlords helpful. There is a lot to consider when becoming a landlord and it is a big responsibility that should be taken seriously. From managing your property to helping your tenants, everything you do as a landlord matters. Hopefully the tips we’ve outlined in this article will help you set a foundation for success.