So you bought another property and you’re ready to rent it out. You can feel the dollar signs growing in your eyes, but you must temper your expectations; cranking up rent to impossible heights in a recipe for disaster and surefire way of keeping your property empty. However, that is only the tip of the iceberg of decisions new, and experienced, landlords wrestle with. Here, we will discuss solutions that many landlords utilize.
Communication And Rent
Like any good relationship, communication between two parties is key. Let’s say you had tenants move in a few months ago and they’ve been on time with their rent. But, then one month they miss their deadline. You try to reach them and you don’t hear a single word. Then another month goes by and they are still late. And then another. At first, you might have given them the benefit of the doubt if they had first came to you; maybe their paycheck came late–something easily understood and fixable. Do not be afraid to send eviction notices. This is your property after all, and their failure to pay is only hurting you; you don’t have to be a ruthless ruler, just an understanding one.
Speaking of rent, drop collecting rent from your mailbox. That is risky business and even more so if you are known as a landlord. This is allows you to avoid any fees that come from bouncing checks and NSF fees. Keep a designated account for collecting rent and you’ll be all the happier for it.
Say “No” To Pets
Look, we all love our dogs, cats, birds, and spiders, but pets cause damage to a home that can lower the value of the property and make it harder to rent out to another set of renters. Carpets can be replaced, messes can be cleaned and walls can be repainted, however, that comes out of your pocket. Not to mention pet urine can linger for months, even after the carpets been replaced.
Calculating Rent Is Harder Than It Sounds
You may have come across a few rent estimator tools, but are rent estimator tools worth using? Yes and no. Like many income and loan tools, rent estimator tools are very broad in their approach, some may even give you widely different numbers. Save yourself the time and use a rent prediction tool as a simple rule of thumb, a diving off point. Your best bet is to get in contact with an investor that can look over your papers and give you the best options. They’ll know to look at average neighborhood rent, market rates, number of bedrooms, square footage, property reports, and even rent statistics of previous owners. If that sounds like a nightmare to you, then it’s best left to a professional.