Many landlords hand over the management of their property to outside companies. This not only eats up a big portion of your revenue, but misses out on building a good relationship with your tenant – and this can be the key to keeping them long-term. Here’s how to make sure the lease works for both parties.
- Be selective
Working within your state’s fair housing laws, it’s crucial to get to know prospective tenants before agreeing a lease. Accepting that people can sometimes fall behind on payments, professionals who can pick up extra hours often make very reliable occupants.
- Wise up
Landlord and tenant laws can vary tremendously from county to county, so it’s essential to know the local landlord and tenant act for your property. If you don’t, you could end up with a tenant who knows his way around the law better than you – and knows how to live rent free for a few months.
- Be clear and consistent
Clearly state your payment terms and conditions – and make your tenant accountable. So if rent isn’t paid on time, make sure you charge the stated late fee.
- Be efficient
Have a business account to process payments directly from your tenant’s checking account. It’s also worth getting authorization to process the rental payment on their credit card, in case their account does not have sufficient funds.
- Be a good landlord
A rental portfolio needs regular attention. Regular inspections and maintenance are essential to prevent small problems getting worse. And by making sure you’re keeping the property to a high standard, you’ll have happy tenants and a continuous turnover.
Staying on top of your tenant-landlord relationship might seem like hard work at times, but it’s easier than searching for new occupants – and easier on your finances too.