As a first-time real estate investor, you have the chance to earn a passive income, and over time you can even build up an impressive property portfolio.
But you need to take your first steps carefully. Now that you're in such a strong financial position, you don't want to make mistakes that could cost you money or lead to tenants taking legal action. To help you make the right decisions, we've created this first-time landlord guide.
Keep reading for essential first-time property management tips.
Create a Watertight Rental Contract
Your rental contract is legally binding, so it needs to be specific. Ensure it confirms details such as the length of the contract, payment terms, and who pays for maintenance and repairs. You should also state the rules tenants must abide by as well as the consequences, such as eviction if they break the regulations.
This will safeguard both you and your tenant while they rent your home.
Prepare Your Property for Tenants
One of the most crucial post-purchase rental steps is to inspect your property. The first thing you're looking for is health and safety issues like fire risks or trip hazards such as raised floorboards. This needs to be fixed immediately to prevent tenants from coming to harm in your home.
Next, it's good practice to make sure your rental is pleasant and provides a high standard of living. For example, you can check that the curtains keep out daylight and your property is clean and hygienic.
Determine the Rental Price
Every new rental property guide should help you maximize your profits, and this means setting the right rental price. You can get an idea of how much you could charge by reviewing other rental properties in your area. However, you should look for key differences that will allow you to charge more than other landlords.
This could include your property having recent upgrades such as new windows or doors. Or you might have a large backyard that would attract interest from potential tenants.
The key is not to underestimate your property's value, as this could lead to you receiving a much lower income than you should.
Leverage Property Management Technology
There is always much to do when you own a rental, and you can use technology to make life simpler. Providing an online tenant portal makes it easy for renters to make payments and request rental property maintenance.
You can also send out automated emails reminding tenants to pay rent, increasing the chances of them paying on time.
Get Expert Help to Succeed as a Real Estate Investor
At PMI East Bay, we know being a first-time real estate investor can be daunting, but it doesn't have to be.
As a locally owned and operated property management company, we understand how to attract the right tenants for your rental. We also handle the day-to-day necessities that keep your tenants happy and your property in excellent condition.
Get professional help managing your first property and contact PMI East Bay today.
