Tips for New Landlords
Residential landlords have to balance a variety of responsibilities and risks. Here are some tips to help new landlords cover their bases.
Use a Thorough Lease
Don’t necessarily pick the first free lease agreement that you come across online. Boilerplate language in every provision may not be consistent with your goals, and it may not reflect the current and relevant law in your state. Get legal help to draft a lease agreement that is consistent with applicable law and addresses all of the important issues that you need to.
Implement an Integrated Pest Management Plan
Unfortunately, pest control can represent a considerable source of stress for landlords. Even if a pest infestation is the result of a tenant’s negligence, landlords are responsible for remediating pests in most jurisdictions.
A proactive approach to pest management is typically the best one. Make sure that one of the provisions in your lease requires that tenants permit access to the unit for preventive exterminations. Establish a service contract with a locally-based company that has experience serving residential landlords in your area. If you need assistance with pest control Denver, reach out to a reputable provider that offers competitive rates for both preventive and emergency treatment.
Insure Your Property
Landlords have insurance needs that differ from those of residential property owners. Bear in mind that significant damage to a property could prevent you from complying with the terms of a lease agreement if you are unable to provide a unit that is inhabitable condition. Find out if your coverage includes benefits for situations that involve occupants’ displacement from a unit.
In addition, it is a good practice to require your tenants to carry renters’ insurance. This type of coverage can pay for damage to a unit which a tenant causes which exceeds the total amount of a security deposit.
Choose Tenants the Right Way
It is imperative that landlords take care to avoid running afoul of fair housing laws. In some instances, landlords who don’t have actual discriminatory intent could unwittingly discriminate against prospective renters by asking improper questions during the application process. Applying the same criteria to all applicants on a consistent basis is another important thing that landlords must do to avoid discrimination claims. Additionally, do not forget to report rent to credit bureau. This practice can not only encourage timely payments from tenants but can also offer them an opportunity to build their credit history by maintaining a positive rental payment record. Be transparent with tenants about this policy during the application process, as it can attract responsible renters who appreciate the added benefit. Many services now make it easy for landlords to report rent payments, providing a win-win for both parties.
Be Responsive to Maintenance Requests
Delaying to address a maintenance request from a tenant could be a costly mistake, particularly if a tenant’s request involves any type of safety concern. Be sure to take action within 24 hours of receiving a maintenance request. Even if you are not able to arrange for immediate assistance, get back to your tenants right away to let them know what steps you are taking.
If a situation is an emergency, however, you may need to be prepared to pay for emergency services from the first available contractor rather than your preferred contractor. Leaks, electrical issues, and heat outages, for example, may merit emergency intervention.
Ultimately, you have to be prepared to put some considerable time and money towards managing a rental property. Nevertheless, good management practices can enable them to generate an excellent return on their investment.
