Welcome to the world of being a landlord! This is a job that comes with many perks but also carries many responsibilities. If you’re a first time landlord then you may not know exactly what’s expected from you, these five simple steps will help to guide you along the way to being a good landlord.
It doesn’t matter if you’re renting out a domestic or commercial property, these tips apply equally to both. Don’t be put off by this list, being a landlord can be one of the most rewarding jobs out there.
#1 Give Your Tenants the Rules
Without rules, chaos ensues. If your tenants don’t know the rules of your property then how can they follow them? It’s elementary, but many landlords fail to provide their tenants with basic ground rules and are then surprised when they find out that they’ve redecorated, put up shelves or even knocked walls through! Come up with a simple list of things they can and cannot do and make sure they read and sign it – this can save both parties a lot of trouble in the future.
#2 Maintain Your Property
If something breaks, fix it as quickly as possible. Your tenants are paying good money to be living in a building that gets maintained for them, they aren’t going to be happy if things start falling down around them. Dragging your heels when problems do arise will have you branded as being cheap and lazy – not character traits you want associated with you.
#3 Ensure Rent Covers the Mortgage
The easiest way to not be seen as cheap is to have the money available to fix issues. Talk to commercial mortgage brokers and find the best possible rate for you, giving you low rates that allow you to easily cover the cost of the mortgage and have some extra money aside for emergencies. Not doing this is the fastest way to fail, as you may see your funds being slowly drained instead of building up a handsome profit.
#4 Stay in Contact
You don’t want to crowd your tenants by constantly pestering them, but calling up every other month can be extremely helpful. Often tenants will have a problem that they don’t deem big enough to trouble you with, but it could turn into a bigger issue. For example: water stains on the ceiling or a central heating system that doesn’t work as well as it should; both of these can turn into very big, very expensive problems.
#5 Try to Keep Rent Consistent
As inflation rises you’re going to want to increase the rent to stay in profit, however you really should think long and hard before bumping it up. Tenants always want the best rates, and if they can find a cheaper property elsewhere then they’re likely to move.
However, if and when you do decide to bump up the rates then make sure you give plenty of notice and provide reasons – make sure your tenants know you’ve had to increase the rates due to necessity rather than greed. If your reason for increasing the rent is due to number three then it may be time to talk to the brokers again!
Following these five steps won’t guarantee that you’ll be the perfect landlord, but they will give you a great understanding of what’s expected from you. With a bit of hard work, communication and clever maths this could be the best paying job you’ll have!
About the Author – Pure Commercial Finance is a specialist in commercial mortgages, scouring the whole market to find the best rates available for you. We also cover a range of other finance solutions including bridging finance and invoice factoring, helping you to snap up development properties and ensure you get paid on time.