Being a landlord can be a great way to make a passive income. However, it takes time and education to be successful. Here are 5 simple tips that can help you!
01. Always Check References
Screening your candidates by calling their current or previous landlord is a smart move that can save you time and money in the long run. This simple task can save you from someone who may destroy your property, not pay their rent on time, or cause other trouble. Here are a few questions you can ask their previous landlord…
02. Have Everything in Writing
Despite how much you may trust or like your tenant, a verbal agreement is not enough! You should have something in writing for all agreements that are made. Having something in writing not only makes you look more serious as a landlord, but this can protect you legally.
03. Interview Prospective Candidates Very Carefully
You can’t judge someone based only off of their application. Prescreen your candidate by verifying their monthly income, credit score, and employment history. You should also obtain a credit and background check. If you’re not sure what questions to ask the applicant, check out these 20 Questions To Ask Potential Tenants by RentPrep.
04. Obtain Adequate Insurance
Homeowner’s insurance will not cover a home that is not occupied by the owner. Make sure you have the adequate landlord insurance,.
05. Stay Up to Date on Regulations
Follow all applicable regulations in the renting of your investment property. Make sure that you do not violate the privacy of your tenants!
