Effectively Owning Rental Property The term landlord seems almost feudal in today’s society, but the advantages of owning and renting out units or homes are as great as they have ever been. Because of the recent trends in the housing market, more and more individuals and families are turning to rental homes instead of purchasing their own through traditional methods. This increase in renters across the nation has meant that property-owning landlords are cashing in on monthly renter’s payments from their tenants. But the recent spike in renters has also meant that now more than ever, a landlord must go about their business with intelligence and prudence.
Screening Tenants The first thing that a landlord can do to ensure their own financial security and to protect their property is to dutifully screen all tenants before signing a contract with them. A landlord may wish to check the credit history and general background of any prospective tenants before agreeing to rent the property to them. Additionally, requesting and contacting references for the prospective tenant will be a good way for a landlord to screen tenants before agreeing to terms. The use of a written application process is a method that can be considered by landlords to help in the screening process. The second way that a landlord can increase the efficiency and safety of their rental property is by obtaining proper insurance. The two best friends of any landlord can be liability and property insurance. A well-defined property insurance policy will be able to protect the landlord’s property from any damages incurred by storms, fires, acts of vandalism, and burglaries. By having sufficient property insurance, a landlord can protect their assets of a rental home or homes for the future.
Insurance Liability insurance provides insurance coverage for landlords from claims filed against them by tenants. Differing lawsuits may be filed against a landlord by a tenant if the tenant feels they were injured by fault of the landlord’s negligence concerning the rental property. This concern for liability on the part of the landlord leads to the next tip for landlords to consider which is disclosing all environmental hazards of the property to the tenants. In some cases there will be hazards such as mold or lead existing on the property that a tenant may claim has resulted in health issues.
A landlord can largely protect themselves from liability claims by fully disclosing all such environmental hazards to the prospective tenants before agreement to rent or lease has been determined. But there is more to owning and renting a property than protecting against physical and liability damages. The basic advantage of owning a rental property is collecting payment from tenants. It is this financial benefit that must be secured and protected in order for a property owner to continue receiving a return on investment. Perhaps the best way for a landlord to ensure the continued success of the property is by hiring a property management service. Property management services can be outsourced to professional property management companies which will be able to perform the daily, weekly, and monthly actions that will lead to a successful and effective collection of profits off of an owned property.