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There are many benefits to renting property rather than selling it right away, including being able to access a passive income as well as being able to use rental income to pay off more of the home, and so cash in bigger when it does come time to sell. However, many people are wary of leasing out the property because they are worried about the risks and stress involved. The good news is that much of that can be ameliorated by following the guidance below. Keep reading to get all the best low-stress tactics to make renting property a breeze!
Spend time vetting your potential tenants
You can head a great deal of stress and hassle off at the path, by making sure you complete comprehensive tenant checks before you allow them to sign a contract and move in. Checks that should be completed include making sure they have references from their previous property, as this will show they have a history of not only making payments on time but also of leaving that property in good condition. Credit and background checks can also be useful here as they will inform you of your potential client’s ability to afford and keep up with payments.
Make sure you investigate and invest in the right types of insurance
Normal house insurance is not the same as a policy that covers a property that is being rented to tenants. Unfortunately, that means if you have the wrong kind of insurance, and something does happen, you could find yourself being liable for the bill to fix it entirely out of your own pocket.
Remember, a landlord insurance policy is much more comprehensive than typical home insurance and it should include not only cover for damage to the property caused by weather, accidents, or tenants but also situations where you as the owner could lose rent. Indeed, it will also need to offer liability insurance in case a tenant is injured at the property as well, otherwise, you could find yourself with a huge compensation case on your hands.
Make sure you are aware of the laws around leasing property
Another way that you can cut the stress involved in being a landlord is by ensuring that you understand the laws that apply to leasing property. Of course, these laws will differ depending on your location. For example, in the UK landlords have responsibility for several things such as the heating, fire safety, hot water, the exterior and structure of the property, the safety of electricity and gas, as well as any sanitaryware in the bathrooms.
As a landlord, you also need to protect a tenant’s deposit if they have a shorthold tenancy that began after April 2007. You must do this by using a TDP or tenancy deposit scheme that is approved by the government.
Regularly inspect your property to make sure tenants are keeping to the terms of your agreement
To avoid stress later on in the landlord rental process, doing regular visits and inspections of your property will be necessary. Indeed, by inspecting your property every 6 months to a year you will be able to check that your tenants are keeping it clean, well maintained, and have not completed any unauthorized works, or caused any damage.
However, it is crucial to remember that even as a landlord you will not have unrestricted access to the property once a tenant is in residence. Although, it’s vital to remember that you will need to gain the permission of your tenants for this, all but certified emergencies such as a gas leak, where the gas company would be able to force entry by law. Instead be sure to schedule any inspections ahead of time, and give your tenants plenty of notice. Lastly, even though you have a key, if you know your tenants will be there when you visit it’s best to knock on the door and let them answer, as a courtesy.
Get things fixed sooner rather than later
As you will know from reading the section above, there are many things that you can be responsible for fixing as a landlord, and with this in mind taking action to get these things sorted sooner rather than later is always a better choice.
This is for two important reasons. The first is that by leaving something unfixed you could be endangering your tenant’s health and wellbeing, something that could at best sour your relationship, and at worst leave you liable for injury and compensation.
Secondly, it’s worth bearing in mind that while your tenants are the ones living in your property, it does remain yours. That means fixing any issues quickly is important because it will help you to limit any further damage and so maintain the value of your investment over the longer term.
Leave the day-to-day stuff to an expert property manager
Now you may think that all the tasks above sound like a lot of hassle and work, even if they will reduce the stress of being a landlord over the long term. Well, if that’s the case then there is good news because it is possible to use the service of a firm like The Realty Medics, which specializes in property management. Indeed, by using a property management firm you can ensure that any repairs, maintenance, or other issues are resolved quickly and efficiently with little to no effort on your part at all. Property managers can even help with things like collecting rent, as well as finding and vetting tenants for you too.
Be sure to have enough capital to protect your investment
Whether you choose to complete the tasks above yourself or you leave them in the hands of a competent property management company, one thing remains constant. It is that you will need to have enough money on hand to protect your investment no matter what happens.
Indeed, by ensuring you have around 1-2% of the total value of the property put aside to be used for repairs, maintenance, and situations where you could lose rent you can avoid so much of the hassle and worry that landlords face.
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