5 Tips for Becoming a Successful Landlord
Buy to let investment is considered very profitable even in a stagnant real estate market. Reason is the steady monthly income in form of rent. But becoming a successful landlord is not as easy as most people consider. Many buy to let investors have sustained huge losses due to lack of experience. If you want to become a successful landlord then you have to consider many things. Here are the top 5 tips for becoming a successful landlord.
Check your financial standing
The first thing every successful landlord does is the credit check. Some people buy homes with cash whereas others buy with a mortgage. Successful landlords invest in homes that are within their reach as they can easily pay the monthly mortgage payments. If landlords will buy homes that are out of their budgets then they have to comprise on other monthly expenses. Therefore everyone should consider the budget for buy to let investment.
Be a businessman
The successful landlords have professional attitude. Buy to let investment is a business and they treat it in the same way. Many people rent homes to the friends and relatives who take many advantages. Rents are normally low and homes are used roughly when let to friends and relatives. All these practices make the buy to let investment a liability instead of profit, especially when home is purchased with a mortgage. So the second thing is that landlords should think and act as businessmen.
Select tenants with great care
To be a successful landlord the third tip is to screen the future tenants. The checking of tenant’s background can be done by firstly checking the credit history. It is very important to select the tenants who pay rents on time. Generally people with good paying jobs are best tenants as they pay rents on time. Secondly check the criminal record with the local police station. Thirdly know the behavior of the tenant from their previous landlords.
Know your duties
The landlord has many duties. Firstly landlord has to keep the home in good condition. Secondly landlord has to pay the tenant for the repair works. Thirdly landlord has to ask for the permission from the tenant to enter the home. Fourthly if a landlord wants to end the tenancy agreement then s/he has to send a month’s notice to the tenant. Fifthly landlord has to return the security deposit to the tenant at the end of rent agreement.
Remain calm in disputes
Disputes of landlords and tenants are very common. Most disputes arise on the payment of rents or rough use of homes. But good landlords always behave in professional way as it helps in solving the issues. If any dispute arises then landlord should firstly give a verbal notice to the tenant. The second stage is to send the legal notice. If dispute still exists then take the matter to the court. This will solve the issue and landlord can also avoid the fight.