2020 is coming, and you are looking to generate additional income for yourself next year. There are lots of ways to do it but making it happen is another task, altogether.
You have thought about getting into the real estate game as a landlord. Perhaps you inherited some property, or maybe you have a part of your home to rent out. Or maybe you have some money saved and are thinking about purchasing a residential or commercial property to rent.
Whatever the case, real estate is one of the oldest moneymaking businesses, and one of the most proven. Done properly, you can make a great second income while your property continues to grow in value. The key is, however, doing everything properly.
Here is a brief outline for you to understand how to become a landlord in 2020.
Learn the Business
Being a landlord is complicated and involves lots of details that need to be handled on an ongoing basis. There is no doubt that without educating yourself, you will miss important details that at the time may seem trivial, but as time goes on, can destroy your business.
A good landlord must know how to understand and anticipate problems and to do so in a productive way. You have to know how to deal with the law and what goes in to creating a tenancy agreement. You will also need to consider property maintenance and cleaning and of course tenants who will likely have very different personalities and needs.
Managing all of this while trying to make a profit is challenging, even for the most knowledgeable landlord. Without the proper knowledge it is nearly impossible. So take some classes and read all you can on the key information on how to be a successful landlord. Once you are sure you have learned everything you need to know, only then should you move ahead.
Landlord Safety Responsibilities
A lot of energy companies recommend that you get your boiler serviced once a year to make sure everything is still in order and that it is operating safely. Whether you’re a landlord working with combi gas boilers or just gas boilers, ensuring your boiler is safe and not leaking in any way is a crucial part of being a helpful and efficient landlord. As a landlord this would be one of your many responsibilities but a very important one! If you are renting to a family, you do not want them without heating and hot water during the winter, with it being your fault.
If a situation ever arises where you need to replace a boiler, this should always be done by an expert. The reason for this is that many gas and electric appliances contain asbestos. It is always the landlords responsibility to check for any signs of damage to asbestos in the home and have it removed by a professional company such as Smart Asbestos Solutions.
Use a Professionally Written Lease Agreement
You should hire a real estate law firm, and one of the first things they should create for you is a rock-solid lease agreement. This is the document that you will have with your tenants that will protect you from any problems and make sure that you get paid. Do not take a short cut, pull something off the internet and think that it will suffice. A local real estate law firm will know the exact agreement you need and make sure that you are covered. You should use this agreement with every tenant.
Make Rules and Enforce Them
Your business will survive and run smoothly based on the rules that you set up and enforce on your property. Tenants can have their ideas about things, and you can quickly find that how they want thing to work flies I the face of your own ideas. To avoid any misunderstandings and tension have all of the rules regarding your property laid out in the lease agreement. Further post signs around the property to enforce any important rules. Make sure that all tenants follow all rules. Making exceptions will only invite problems.
Charge Late Fees and Collect Them
Some landlords think that charging late fees is unfair. They will let tenants pay late with no penalty because they understand that sometimes people might be having a hard time. Late fees are important, however, because they show tenants that every time they break their agreement with you, there is a penalty. This is important and will go a long way toward getting the desired actions and attitude you want from your tenants in every area. They may think that you are tough, but tough is a compliment when you are a landlord.
Consider a Property Management Company
You might consider a property management company, if things are too challenging for you, or you don’t have the time to be a full-time landlord. These companies charge a fee but handle nearly everything including sometimes helping you to locate and sign tenants.
Finally, never rent to family or close friends. They never pay you on time or observe your rule. In short, it is a recipe for disaster.