When you venture into the world of real estate investment and you choose to rent your properties to prospective tenants instead of selling it, you will obviously become a landlord. However, the way to becoming a successful landlord is never an easy road to take as it takes a lot of your effort, time, and money just so you can start seeing your desired results in the shortest amount of time possible. If you think it is just as easy as collecting rental fee every month and just prancing around till the next payday, then you got it all wrong for there is a strict system involved such as making sure your property is safe and secure and will not cause any harm to the tenants, plus you have to coincide with the building codes and etc.
Being a landlord means having the perseverance to work towards your goal of raking in income and making sure your tenants stay longer and pay on time. Here are simple ways we are giving you from Home Hunter University by Nicholas Haley on how to succeed as a landlord.
- Keep an eye on your finances
Your finances will basically fuel and support you in this business venture, once you mismanage it or allow anyone to tamper with it, you will begin to shed money and before you realize it, you are failing. You do not want that, so you have to make sure you keep an eye on where the money comes from and you must always know where the money is going especially when it comes to utility bills, advertising costs, maintenance costs, insurance on the property, and of course, the property taxes.
- Familiarize yourself with the law
Above anything else, the law stands with pride, and although the law may protect you somehow, it could also be the biggest reason of your downfall as a businessman. You have to make sure that you are following every building code to ensure the safety and security of your tenants. Failure in attending to these factors and concerns could result in unnecessary circumstances and inconveniences you could have avoided in the first place should you have followed the law.
- Attend to your maintenance responsibilities
It is known that there have been many conflicts between tenants and landlords when it comes to maintenance in the property. It is a great rule of thumb to remember that whatever is outside the tenant’s rented room/house is mostly your responsibility. The tenant’s storage area and overall interior of the rented place is obviously the tenant’s responsibility. But accidents or small mistakes such as a chipped off cement, stained walls, broken sinks, and windows are obviously inevitable, that is why you, as a landlord, should really ensure a security deposit so you can easily take the repair fees from there.
- Know when to evict a tenant
Some tenants would like to live in peace and harmony with other tenants while the others just enjoy disturbing them. Before it starts to affect the relationship you have with the good tenants, know when to evict the bad tenant before your good tenants leave you.
As a real estate investor, you may be wondering at times on how to properly take care of your property’s maintenance. Should it be your sole responsibility as the landowner and thus should always be on-call should there be any leaks, damages, errors, and cracks? Or should the tenant also play a significant role in helping to maintain the property in tip top shape?
Here at Home Hunter Academy by Nicholas Haley, we will be helping you in breaking down the entire process on how your tenant and you as a landlord should work hand in hand in making sure that your property’s maintenance is well-taken care of at all times.
- What are the certain responsibilities of the landlord?
It is needless to be stated that one of the utmost priorities and responsibilities of the landlord is making sure that the rental property coincides with the Landlord-Tenant Law.
- Guarantee safety
The Landlord-Tenant Law seeks to protect the residing tenants’ health and safety at all times. You, as the landlord, should see to it that there is enough security within the property and for guaranteed measures, you should install CCTV cameras around the property, making sure it is set in strategic places so you can monitor who went in and out of the property should there be any unfortunate events or tragedies.
- Provide a place for proper garbage disposal
Aside from that, it is also the responsibility of the landlord to provide a place wherein the residing tenants can dispose of their garbage properly, somewhere inside the compound but far enough to keep away the stench that may spread through the tenants’ rented house/apartment. You should also make sure that the trash will be collected every week to maintain cleanliness and the freshness of the air as much as you can for when bags of trash are kept in a place for a long time, it may start to affect the health of your tenants.
- Provide utility water
It is obvious that it is the landlord’s responsibility to provide running water that can reach and provide water towards the utilities wherein it is much needed, such as the sinks, toilets, and showers. Being unable to provide for your tenants’ basic needs could result in future problems and unnecessary lawsuits.
- Follow the building codes
Following the building codes is not only meant for the protection of the tenants themselves, it was also meant for you as a landowner. Some common circumstances wherein it is the landlord’s responsibility to make sure that these issues are well taken care of are: neutralization of carbon monoxide levels wherein high levels of this will affect the tenants’ health, structural safety of the building, issues with a faulty pipeline wherein plumbing work needs to be done, and pest infestations wherein exterminators should be hired.
- Maintain the property’s basic utilities
These basic utilities could mean installing proper lighting along the hallways, gates, backyard, front yard, and parking lot. You have to make sure that none of the lights will bust out and left unattended, if they are, they should be replaced right away to ensure safety for your tenants.
Being a beginner in the world of real estate investment could make you a tad bit apprehensive and frustrated but that is okay and that is only normal. No one ever said that this part of business is easy and no one really breezes through it. However, that means we have no reason to venture into real estate. Being in the real estate is like playing chess, you have to study your competitors and the assets and investments you have at the moment, by scanning your surroundings and studying what has been laid out, you can strategize your ways towards achieving your ultimate goal: winning and gaining a huge amount of profit.
Here at Home Hunter University by Nicholas Haley, we will be helping you by guiding you in making your first big step, which is buying your first house. Whether it’s for reselling as a retail or rehab house, these basic tips will definitely make things easier for you.
- Determine why you are buying a house
Ask yourself why and focus on it. When starting off in any business, no matter how far you have come, you will always come back to the real question as to why you are here in the first place, this main question will be your guiding light and will motivate you to proceed with the purchase without any hitches. You are buying the house to resell it right away or to rehabilitate it and then sell it at a much higher price. Stick to this, focus on your goal, and the following tasks will become easier.
- Ask for referrals or look at business listings
If you have a lot of friends or colleagues all around the state, they may be familiar with houses for sale nearby their neighborhood. However, if you want the real juicy details on where the best houses are and where you can get the best deals, it would be a great idea to befriend a real estate agent for he can tour you around great neighborhoods with great houses. Reselling houses in these locations would become so much easier for you in the future. If no one knows anything, look at business listings online, they should have what you are looking for.
Dealing with real estate is no joke because we are not talking about a few thousand dollars, we are talking about tens of thousands if possible and you will have to be financially sufficient before you can make any right moves.
Some house prices are negotiable and before you can make any moves on being able to negotiate the price, you have to study the background of the house such as its real and existing market value which is the most important one.
- Obtain a homeowner’s insurance
We can never predict the wrath of mother nature, however, that is one thing we should always prepare ourselves for. Whether it is for a flood, typhoon or earthquake tragedy, you can guarantee you will be in good hands after the misfortune.
An open house is a time or opportunity wherein the real estate property owner or seller tries to market his property by throwing an open house party wherein prospective buyers can inspect the house if ever they are interested. At times, it can be arranged as an RSVP event or it could be an open invitation, the seller can also decide whether he will serve finger food or actual meals during the open house if he wants a more generous or a gallant way of marketing it.
Usually, the seller contacts real estate agents to help him garner more prospective buyers, he can also invite over neighbors within the community or village where it is located and in this way, they are encouraged to bring other people which could be members of their own family, their friends, and colleagues who may also be on the hunt of looking for a new home to move into. By throwing an open house and inviting people of various backgrounds into one single property where anyone can seal the deal anytime, the prospective buyers will be pressured to make a decision as immediate as they can. An open house also gives you the opportunity to be able to beautify your house and make it as picture perfect as you can to attract and motivate prospective buyers to consider buying it as their own home.
The best people to invite
Because you are basically marketing your property to be able to sell it as fast as you can, you need to be able to focus on your target market and determine to which kind of people it is best to sell it to. Through this manner, you will be able to filter out and scan buyers and tenants more effectively. It is important to consider inviting people who are obviously financially stable and ones you can guarantee that they can afford to buy the property without any hitches in the future.
The best time to throw an open house
Sometimes it is just all about the timing. You can throw the most gallant open house you can come up with but when you schedule it in the morning during a weekday wherein most people are at work, the parents attending to their kids, and some are running errands, you will most likely end up with an empty house. Be sure to schedule your open house during the weekend, preferably during the afternoon where people are mostly active and time-wise available for any leisure or recreational activities. In this way, you can guarantee most people will not be as busy as they are usually during the weekend, so you can have their full attention.
You get to build more connections
As a real estate property owner, connections are everything and by throwing an open house, you are welcoming possible network of connections that may come in handy for the future. Whether it is a prospective buyer or a future business partner, the possibilities are just endless.
For the past week, we have been discussing about turning a drab property into a glam one and reselling it as a rehab home. For sure, you have learned a lot by now and I am pretty sure you cannot wait to venture into that part of real estate. Selling a house can earn you instant profit, however, renting it out may start out slow at first, but the profit is consistent and you will earn more money from it in the process as long as you are patient enough.
While there could be other reasons why you are renting out your property, it could be that you have been trying to sell it out in the market for so long and so far the progress or process of you coming towards the way of achieving a break even seems a bit hazy at the moment or you just want to gain income by serving as a landlord. Worry not, for we here at Home Hunter Academy by Nicholas Haley, we will be introducing to you the idea on how to turn your rehab home into a rental property through these following steps.
- Acquire Permits
Depending on where you are, certain processes of acquiring your permit may vary. However, as it is a business, a permit will always be required. Before you get your permit, you will have to register for it, expect that an inspector will be checking out your place whether at a time when you least expect it(some of them tend to do this) or at an agreed time. The inspector will typically check the heating, electrical wiring, appropriate exits in case of emergencies and other safety precautions for the prospective tenants.
- Secure an Insurance for Your Property
Securing an insurance for your property will be one of the smartest decisions you could ever make. Whether we like it or not, we will face unprecedented situations in the future that we may never be internally prepared for. However, that does not mean we cannot do anything about it. Securing an insurance for your property will protect you from any emergencies that may involve your tenants, such as an inspected minor fire, the aftermath of a storm and other situations that may decrease the value of your property, an insurance will help you out on this.
- Manage Repairs and Upgrades
As what we have mentioned multiple items in the previous blog posts, if you want to add value to your property, you have to make an effort to manage repairs and create upgrades such as installing the latest version of the heating system or keeping your tenants secure 24/7 with a state-of-the art security system. Some upgrades and repairs will not cost you much, however, it is just as important to impose on these repairs and upgrades.
- Create a Competitive but Realistic Price
You will not be selling your house, therefore, you have to be able to offer a rental fee of your property which is much smaller than your selling price. For sure, you will have competitors around your area, however, you do not have to match their price, your rental fee will always have to be based upon your property value but make sure you do not go overboard, create a realistic price wherein you will still be able to rake in prospective tenants.
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