Property management can be a very fun and lucrative career, but sometimes, it can be like living inside a nightmare month after month.
Set a Deadline for Rent and Stick With it
Obtaining the monthly rent from your tenants can sometimes feel worse than pulling teeth, but if you put certain measures in place, then you can have a good chance of setting the expectations early, so that this doesn’t become a reoccurring problem. Granted, there will be times that tenants could still be late on their rent, but their excuse might be genuine if you follow the following steps.
Outline in your contract what day you expect the rent and be sure to outline costs such as daily, or weekly late fees. Your tenants will take you at your word as long as you follow up with acting on the consequences. Giving some people too much wiggle room could end you up losing thousands of dollars in rent. Don’t believe us? Well, this sort of thing happens all the time and its best to avoid these types of situations whenever possible, so be sure to take our advice!
Make Tenants Accountable For Their Damage
If you are doing a routine inspection of your property and notice that it has suffered any type of damage caused by your tenants, don’t hesitate to speak up and ask them to fix it. If you hold them accountable for making the necessary repairs, then most likely they will think twice about damaging your rental property and you will have to incur much less financial strain when they move out. This topic will also lead us into our next tip about documenting your property before and after a tenant has moved in.
Document and Take Photos of Your Property
This is another very useful tip that will hopefully save you thousands of dollars down the road, and trust us, it will. Usually, before any landlord advertises their property for rent, they will clean up the property and make any repairs and adjustments that the property needs, before a prospective tenant moves in. So, right before you rent the property out to someone, be sure to take photographs of each room and note what kind of condition that room is in and if you find any imperfections.
Furthermore, after your tenant moves out, take photographs and notes once more, and note any visible damage that has happened on your property. This could be things like holes in the walls, destroyed flooring, tile, or carpet, and even any stains or scratches caused by pets.
If you document any of these things, then don’t hesitate to let your former tenants know that they won’t be receiving their security deposit due to the damage that they have caused while living there. If they argue, then you have photos and documentation of the property before they ever decided to move in that you can provide them. In most cases, this will prevent them from pursuing the argument further. One more thing, if your property suffered from extreme damage due to your former tenants, send them a bill for all the repairs they are responsible for.
Put Everything in Your Rental Agreement
This tip definitely seems like a no brainer, but all too often we see landlords not utilizing their rental agreements like they should be. When writing the rental agreement for your tenants be sure to outline any rules you have and set the expectations early once again. Make sure to let the tenants know that breaking any of the rules outlined in the contract can lead to eviction or additional costs. You could save yourself even more trouble just by tweaking your rental agreement and making sure everything is crystal clear.
We also want to inform you that rental agreements are for your protection as well. If you forget to outline certain things in your rental agreement like an added monthly cost for additional pets, or an inspection cost, it isn’t uncommon for a tenant to take their landlord to court for things like this. So be sure you are prepared, and you aren’t putting yourself into a position that could potentially leave you vulnerable, because in most cases, the courts will side with the tentants on these kinds of matters, which will leave you with emptier pockets.
We hope you enjoyed this week’s blog post and hope you visit us next week for more great information on house flipping, investing, and more. Our blog is usually updated weekly and you can always contact us if you have any questions or if you’re interested in any of our financing service.
Thinking about flipping houses instead of renting them? If this is more up your alley, then please read our guide on how flipping houses can lead to bigger profits.