Must-Know Tips for Becoming a Successful Landlord
Becoming a landlord requires time and education. Try not to be too hard on yourself if you are just beginning with your first rental, and allow yourself to grow. By being a landlord, you can generate extra income and even more than that. This article will be devoted to the key factors that you need to know if you are planning to become a professional landlord.
A trust agreement is a great way to feel secure, as it protects both parties. This agreement sets the responsibilities of the landlord and the tenant. This is one of the things that you need to know if you wish to become a successful landlord, so you need to make sure that your tenant knows the rules of the property. If something is to happen, you both know what was agreed. This is a way to protect yourself, and if problems arise in the later stages of the deal, it is good to have an AST (assured shorthold tenancy). The point is to avoid the problem from happening, but if your tenant thinks that something is not as agreed, this document will serve as your protection and proof that everything is as it should be.
The Professional Distance
The relationship between you and your tenant is one of the most important facts. You need to create just the right balance. What do I mean by this? So, it is okay to create a friendly relationship with your tenants but keep in mind that this can create potential problems for you in the future. The rent can be late, you can have complaints about the property, etc. If you breach that professional line and become friends, it will be difficult for you to separate friendship from business. So, professional distance is an absolute must and you need to set boundaries! Just don’t go overboard; if the tenant calls you to fix something or to help with something, you should go and do it. This is in your best interest, and you should help if you can.
Again, to protect both parties, you should make an inventory list of the house before your tenants move in. Do not be lazy, as this is very important. Before they move in, make a list of the inventory and take pictures of every individual room. By doing this, you will have evidence of the original state of the property before your tenants moved in. This method is a great way to protect yourself from damage that tenants make while they are using your property. So, if they refuse to pay for the damage, you can go to court, as you have evidence of the previous state of the property
Hire a Quantity Surveyor
This is one more thing that you can do that will help you earn more money. When you buy your first property, you should get a depreciation report. You don’t need to do that, as hiring someone is an additional cost, but this will benefit you. The depreciation report will decrease the amount of tax you have to pay. So, you should seek the quantity surveyor based on where you live because there can be differences in the law’s regulations. In Australia, you can choose between a lot of options; one in particular that I am familiar with is based in Brisbane. You are legally entitled to reduce tax on your rental property, and this is the reason why you should hire a quantity surveyor in Brisbane. This is a great thing to do if you are just starting in this business, as it will increase your cash flow and offer you guidance and experience for future deals.
Invest in Your Property
If you desire to be a professional landlord, you need to invest in your property. This does not mean that you have to redecorate your property with the latest fashion, but your property should always be in a good state. By doing this, you will offer better conditions for your current or future tenants. The point is to invest, as it is going to pay off for sure. By redecorating or adding something new, you can ask for a higher price in the future, which will lead to more profit. Also, it will show you more professionally because you are willing to invest in your business formation, and this by itself will attract new potential tenants every time.
This relates to a previous topic. If you keep your property well-maintained, you can avoid problems. Sometimes some things cannot be avoided, and in this situation, you need to act quickly. A good landlord reacts at the moment, and you should have a list of people that you can call to fix a specific problem in no time. You need to have on your list a plumber, electrician, etc. If, for example, a leak occurs, you need to have a reliable plumber who is going to fix the problem. This will cause less damage to your property, and it will make life easier for your tenants, as they will have a sense of security that you are going to fix any future problem on short notice.