Buying rental properties can make for an excellent investment if you know what you are doing. As first-time landlords, there will be several things you need to learn. New opportunities are everywhere if you learn to take some tried and true advice. Once you get started and learn the ropes, it will be much easier to continue building on your initial investment.
Buy the Right Properties
It’s important that you buy the right properties. Location is everything and will set the stage for how well your properties do when attracting new tenants and becoming part of the community. With the right property, you will be able to make a positive impression within your neighborhood, drawing in the best tenants and increasing property values.
Get the Best Insurance
Get the best possible insurance. This will allow you to run your business, and no, you have the protection you need to overcome any obstacles that might come your way. Talk to your insurance agent and determine what types of coverage you will need to support your business and maintain it successfully.
Screen New Tenants Thoroughly
Carefully screen new tenants. Look for tenants with a positive rental history and a good credit rating. People who are just starting out may lack in these areas, and that’s fine. Ask for a list of personal and professional references, and be sure to call each one. Screening your tenants thoroughly will not only help you to keep your insurance costs low, but it will also give you an opportunity to build a positive reputation within your neighborhood and community.
Streamline the Rent Collection Process
Streamline the rent collection process. Direct deposits mean fewer late-payments and the knowledge that the rent will be in the bank on the first of the month. For those that don’t use direct deposit, choose to take credit cards or online payments. They can pay from their apartment and don’t have to worry about when your office closes. Digital payments are the best way to keep the rent money coming in on time and in full every month.
Have the Right Professional Partners
It’s a good idea to have the right professionals on hand as well. A good property manager will keep your rentals in good condition and handle your tenants effectively. A good contractor or maintenance man will keep things in good working order, and a solid real estate attorney can handle any legal situations you may find yourself in. You will also need a good accountant who can keep track of all your financial paperwork.
Keep Exceptional Records
Keep exceptional records on your rent process, repairs, your tenants, income, and expenses. This will ensure that you will have all of your important information at your fingertips for quick access if you ever have a problem. Documentation is the key to winning any case. Take the time to re-evaluate your record-keeping process so that everything is up-to-date.
Being a first-time landlord is an adventure, but it will be smooth going with some sound advice and a little help from talented professional partners. Contact our agents at AimPro today to get the best advice on all your insurance needs. When you have questions, we are sure to have the answers!