The rental industry in the United States has been booming in recent years, with more and more people choosing to rent instead of buying a home. This trend is especially popular among millennials, who are often saddled with student loan debt and prefer the flexibility that renting offers.
There are several reasons why the rental industry is doing so well in the United States. For one, the economy is improving, which means more people have disposable income for rent. Additionally, home prices are still relatively high, making it difficult for many people to purchase a home outright. And finally, renting offers a level of flexibility that buying a home does not – if you need to move for a job or personal reasons, it’s much easier to do so when you’re not tied down to a mortgage.
However, the increased growth in the industry also means increased competition. If you want your properties to get ahead of the competition, you’ll need to make some changes in how you do things. Here are the best practices that good landlords have in the market.
Always Purchase Good Property
The first step to being a good landlord is to purchase a good property. This may seem like an obvious statement, but it’s often overlooked. To make money from your rental properties, you need to ensure that you buy quality homes in desirable locations. That way, you can be sure that your units will always be in high demand, and you won’t have to worry about making too many repairs or upgrades.
However, don’t be afraid to purchase flippable properties as well. Flippable properties that only require interior repairs such as wall painting and a bit of exterior repair such as gutter replacement can get you the best out of your buck. Good flippable properties such as these can give you a great return on investment, and you can quickly turn around and sell the property for a profit.
Keep Your Units in Good Shape
Another important step to being a good landlord is to keep your units in good shape. This means regular maintenance and repairs and updates and upgrades when necessary. By keeping your units on top of their game, you can be sure that they will always be in high demand, and you won’t have to worry about vacancies.
Additionally, good landlords also know how to stage their units to appeal to potential tenants. By taking the time to stage your units, you can make them more attractive to potential renters and increase the likelihood of them renting from you.
Screen Your Tenants Thoroughly
Another best practice of good landlords is to screen their tenants thoroughly. This means running a background check and a credit check on all potential tenants, as well as verifying their employment status. By taking the time to screen your tenants, you can be sure that you’re only renting to those who are most likely to pay their rent on time and take care of your property.
Raise the Rent Slowly
One of the best ways to keep your tenants happy is to raise the rent slowly over time. By doing this, you can avoid any sudden increases that may cause your tenants to look for a new place to live. Additionally, by raising the rent slowly, you can be sure that you’re still making a profit while also keeping your tenants happy.
Be responsive to tenant needs
Another best practice of good landlords is to be responsive to tenant needs. This means returning phone calls and emails in a timely manner, as well as being available to answer any questions or concerns that your tenants may have. By being responsive to your tenants’ needs, you can build a good relationship with them and keep them happy in your units.
Work With a Property Manager
A property manager is a professional who handles the day-to-day operations of a rental property. They are responsible for tasks such as marketing the units, screening tenants, collecting rent, and dealing with maintenance and repair issues.
While working with a property manager is not required, it is often a good idea for landlords who have multiple units or live in another city. By working with a property manager, you can be sure that your units are being taken care of and that you’re still making a profit.
By following these best practices, you can be sure that you’re on your way to becoming a good landlord. Just remember to always purchase good properties, keep your units in good shape, screen your tenants thoroughly, raise the rent slowly, be responsive to tenant needs, and work with a property manager if you have multiple units. By following these tips, you can be sure that you’ll be a successful landlord in no time.