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What Every First-Time Property Owner/Landlord Should Know

Posted by Will Dickson on Tuesday, November 10th, 2020 at 10:11am.

First-Time Property Owner/Landlord

 

Are you a first-time property owner/landlord? Becoming a property owner/landlord can feel daunting, but we’ve broken down the three areas you should focus on if you’re new to the real estate game.

Tenants

One of the first things you think about after becoming a landlord is finding an ideal tenant for your property; however, that isn’t an easy job. There are multiple things you should evaluate when considering whether or not to rent your property to a potential tenant. 

  • Background check

  • Credit check

  • Past rental history

There are multiple companies that provide services to assist you with gathering, processing, and reviewing this information so you don’t have to worry about taking it on yourself. 

*Marketplace Management Pro Tip: Remember that you can only ask questions that don’t infringe on a person’s privacy. Asking questions such as how many children a potential tenant is planning on having or their marital status is considered a violation of the potential tenant’s privacy. 

 

The Property Itself

No matter what type of property you are dealing with, whether it be a home, condo, duplex, or apartment, the same rules apply. For a tenant to be interested, and for you to gain a higher monthly rent for the home, it’s going to need to be two things: curb appeal and functionality.

There’s nothing worse for a prospective tenant than showing up to a property and finding that it looks nothing like the picture and or something in the property is either broken or not functioning properly. 

A potential tenant will likely notice: 

  • Landscaping

  • Security

  • The exterior (loose siding, brick, or shingles) 

  • Dirty/broken windows or doors

  • Dated appliances or fixtures 

 

A potential tenant will likely check:

  • Water pressure

  • Electric

  • Water damage 

  • Broken doors (interior doors like bedrooms and closets) 

  • Heat/AC units

  • Carpet for smell or stains

  • Holes in walls, doors, or closets

Making sure that the property is in the best condition possible is a great way to put your best foot forward with a potential tenant. 

*Marketplace Management Pro Tip: Inviting a friend or family member to tour your property before a potential tenant will provide you insight into what you may have missed. Utilizing honest feedback like that of a friend or family member will give you the knowledge you need without turning off a potential tenant. 



Everything Else 

When there is a lot going on, it’s easy to miss certain details. While you’re searching for the right tenant, spending time readying the property, you should also keep the following in mind: 

  • Insurance (tenant rental, homeowner property, and lost rental insurance) 

  • Pricing (making sure you’re competitive, but not overpricing your property for the value and neighborhood)

  • Exterior security (floodlights, cameras, etc.)

  • Legal (you may want to consider hiring a legal counsel to look over all of your documents and your first leasing agreement as an added level of protection) 

*Marketplace Management Pro Tip: Managing a property isn’t for everyone. You may find that while you enjoy the benefits of owning additional property such as supplementary income, homes in multiple locations, and the option to sell for an instant cash boost, being the actual landlord may not be for you. That’s where a property management team comes in. There are many great options available for the landlord that doesn’t want to manage their property anymore so you can continue to reek the benefits with lower stress and personal involvement. 

At the end of the day, becoming a landlord is an exciting new opportunity. Whether you’ve accidentally become a landlord or you’re looking to expand your investment portfolio, there are many resources to help you along the way. 

If you’d like more information, please email us at teams@marketplacehomes.com

 

 

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