When people say passive income, some folks immediately think of rental properties. After all, they seem like a surefire bet. Just find tenants, maintain the house or building occasionally, and watch the money roll in.
What new landlords may not take into account is how all those can be challenging without a clear strategy. Especially with rental leasing, there are certain processes you need to master early on to boost your return on investment with less stress.
Lucky for you, we're sharing our top tips to make managing your rental property in Columbia a lot easier.
Take Rental Leasing Seriously
Some first-time landlords treat rental leasing as a side hustle. That would be okay if you have a property manager, but if you don't, you'll find that not prioritizing your rental has consequences.
Remember, your rental is an investment. You need to have a process in place for accounting. Performing thorough tenant screening is also necessary to prevent or minimize damage to your property. Of course, you can purchase landlord insurance, but to keep your rental's value, your tenant application process should be meticulous.
There are also laws and regulations you must comply with before accepting tenants. Everything should be up-to-code, and there should be no issues with the utilities.
Get Rental Pricing Right
To avoid an increase in vacancies, run a rent comparison report to check if your rental price is in the correct range. The right rent price will depend on your location, the amenities you offer, and the condition of your rental.
For landlords whose primary source of income is their property, it's even more crucial to set the right rent price. Consider how it will affect your financials by noting your fixed and estimated expenses. These include property taxes, insurance and HOA fees, utilities, repairs, rental improvements, etc.
Protect Yourself With a Detailed Rental Agreement
Always document everything, even if you've heard of other landlords being okay with verbal agreements. In the eyes of the law, written agreements hold more weight than verbal ones.
You're always better off with a written document signed by both parties. Here's where being detailed is essential. Your rules and clauses have to abide by state-specific laws. If you belong to an HOA (homeowners association), understand that their regulations are not a suggestion, which means these should be included in the rental agreement.
With a clear rental document, communication with your tenants becomes much more manageable.
Consider Working With a Property Manager
A reliable property manager can help you collect rent payments, deal with tenants, market your property, etc. Speaking of property marketing, an experienced manager can help you with lead generation to find tenants faster and more efficiently.
This strategy is best if you don't have the time or resources to fulfill your landlord duties. Don't worry. Working with the right person for the job is something a lot of landlords do.
Do You Need Help With Rental Property Management?
Being a landlord can be challenging, but with the tips mentioned here, rental leasing in Columbia, MD, should be a lot easier to understand.
If you need help, you can always work with a reputable property management company that can assign a dedicated manager to oversee your rental. For more information, contact us to discuss tailored solutions for your property.
