How to Become a Landlord Step by Step
Thinking of renting out your property but have no idea how to become a landlord? Then you have landed on the right page. Learn how to be a landlord today with our step by step guide.
1. Advertising Your Rental Property for New Tenants
It goes without saying that rental income is the lifeline of every landlord. If your property is vacant, then knowing how to find new tenants is the very first step on how to become a landlord.
In this day and age, online classifieds have become the most popular method of finding tenants - Click here to learn which are the best classifieds sites to find tenant online and how to post an effective advertisement.
Traditional methods of advertising your rental property offline cannot be ignored as well. For rent signs and word of mouth marketing remains highly effective till this day.
"For Rent" drive by signs are very quick and cheap to implement. More importantly, they deliver results - Recent studies have concluded that these simple signs account for nearly half of all tenants found offline.
Word of mouth marketing is often overlooked when it comes to finding new tenants but it works well if used correctly - Click here for more details on how to rental property offline for free.
2. Screening and Checking Your Potential Tenants
Now that prospective tenants are ringing you up and knocking on your door, it's time to pick the right one for your rental property. This is arguably the most critical step when you're learning how to become a landlord.
First you will need to interview all tenant applicants by phone and in person. This is a golden opportunity for you to assess them - While this can be a big challenge when you're just learning how to be a landlord, our full guide on how to choose tenants will make things a lot easier for you.
Once you're done with the interviews, you must then run background and credit checks on all shortlisted applicants.
Background checks will verify if the information provided by your applicant is true and up-to-date. In addition, you will be able to check if the person has any criminal or eviction record.
Tenant credit checks will reveal your applicant's credit score, how much debt he owes and whether he has been paying these debts on time - It's an excellent tool for checking if someone is able and willing to pay you rent on time.
To run background and credit checks, you will have to rely on a reputable tenant screening service such as E-Renter.
3. Inspecting Your Property Before the Tenant Moves in
Once you have found the ideal tenant, you should always perform property inspection together before he or she moves in.
During the inspection, you should demostrate how the security, heating and cooling systems work. You should also inform your new tenant of the garbage collection and mail delivery schedule. While it is optional, it would be helpful to give him or her a map highlighting nearby conveniences such as the closest shopping mall, petrol station and 24/7 store.
After inspecting the rental property, remember to have your tenant co-sign a move in checklist with you.
This checklist will protect you against unreasonable repair demands in case your tenant claims that that was existing property damage before he or she moved in. It also makes it a lot easier for you to deduct money from the security deposit... in case your tenant caused any property damage due to abuse or neglect.
Most new landlords find it troublesome to conduct a move-in property inspection but this is an essential step on becoming a landlord.
NEXT: More Steps on How to Become a Landlord
