|
| |
Are You
Becoming a
Landlord?
How to Become a Landlord for the First Time PART 2
Are
you becoming a landlord and lost on what are the right steps for a
first time landlord? Find out how to become a landlord and manage your
rental property in this Part
2 of our Beginner's Guide to Becoming a First Time
Landlord.
Have You Read Step 1?
If No,
Click
for Part 1
of this How to Become a Landlord Guide.
Step 4:
Make Repairs and Maintain the Condition of Your Property
Becoming a landlord means having to
deal with any property repairs and
maintenance to make sure that your rental property is in habitable
conditions according to your area's health and safety codes. Click here to find out
what are the important housing quality standards and safety code for
your rental property.
You need to ensure that your property is well
maintained because most major repairs can very costly and the best way
to lower
your expenses is to fix any damages while it is still superficial.
When
you are hiring contractors to carry out repairs on your rental
property, there
are a few things you have to know as first time landlords. You
can ask
your neighbours, friends and the local landlord association to
recommend you contractors who have provided excellent service.
Most
countries issue licenses for contractors but contractors do
not always have to be licensed to carry out repair works. If you are
learning how to become a landlord, you
should also insist on hiring a licensed contractor to ensure
that the guy who is replacing your water pipes or roofing
has at least undergone a basic
level of professional training.
If
you are becoming a landlord and looking for contractors for
the first time, it's a good idea to
ask for price quotes from at least 3 contractors so that you can
compare and bargain. The prices quotes also has to contain details of
the exact
repair works so that you will know what exactly you are paying for.
Step
5: Keep Records of Your Rental Income and Maintenance Costs
Accounting
for your rental property is not that most exciting task
in the world but it's essential. It's the only way you will know for
sure if your rental property is raking in profits or losing money every
month.
For
the income side, all you need to add up are the rents from your tenants
and any tax benefits that you get to enjoy as a rental property owner.
The
costs can be a bit more tricky for a first time landlord as there are
many different expenses that you may have to include such as mortgage
payments, home insurance and property taxes. If you have hired any real
estate agents or lawyers, remember to include their fees as well.
If you are learning how to become a landlord who can handle his sums, Click here for our
step by step rental property accounting guide and tips.
Depending
on the terms of your rental agreement, you will also have factor in
maintenance costs such as repairs, garbage collection, gardening,
plumbing if you are the one paying for them.
More
importantly, many first time landlords forget to include vacancy costs
when they are calculating their expenses. Vacancy costs are basically
the loss of rent income whenever your rental property goes without any
tenants.
To
calculate your vacancy cost, first estimate how long your rental
property is
likely to be vacant in a year. This usually varies from 2 weeks to 3
months depending on the demand for rental property in your area. Add
the mortgage payment during this time period to the cost of finding a
new tenant to obtain your vacancy cost.
Step
6: Handle Tenant Problems and Evict Them if Necessary
Whether
you are becoming a landlord for the first time or a highly experienced
property manager,
you will probably come face to face with horrible tenants eventually.
Knowing
how to handle nasty tenants is a critical part of becoming a
landlord... if you want to preserve your profits and sanity.
Sometimes it's just a simple problem that can be solved with a 5 minute
phone call while other times it can a major issue that involves
obtaining a court order to uproot those nightmare tenants from your
property. Click
here for our complete guide on fixing common landlord complaints and
problems effortlessly.
Eviction
of your tenants is a costly and lengthy process so we only recommend it
as a last resort especially if you are a first time landlord. However,
sometimes it's the only way to remove those tenants who are living
terrors. If you need to learn how to evict rotten tenants, Click
here for our step by step guide on how to evict a tenant.
Remember
becoming a landlord can be fun and financially rewarding... if you know
how to become a landlord in the first place. With our proven strategies
and tips, you can be sure of less bumpy
journey as a first time landlord.
Read
what our visitors have to share below OR Scroll down to
add your own comment
What are Your Best Tips and Advice for Our Readers Who are Becoming a Landlord?
Being a first time landlord can be both exciting and life changing. Do you have any must know tips or advice on how to become a landlord? Share your valuable experience with everyone here - We will love to hear your tips, comments and real life stories:
What Other Visitors Have to Share with Our First Time Landlords
Click on the links below to read the valuable tips that our other visitors have to share:
Do you want to learn MORE practical must-know facts on
being a new landlord?
Return from
this Becoming a Landlord page to our First Time Landlord
guide
|
|
