1. Screen Tenants Diligently
In order to become a successful landlord and property manager, properly screening tenants is a necessity. Landlords need to thoroughly run background and credit checks to ensure potential tenants are financially reliable and satisfactory citizens. In addition to criminal background checks, successful landlords take the time to look up tenant applicants in the county clerk of courts database for civil lawsuits.
2. Enforce Your Lease Contracts
In addition to creating a strong and thoughtfully crafted lease, successful landlords diligently enforce their leases and protect their assets. Leases are designed to protect properties from physical damage, and landlords from legal liabilities. Landlords should be diligent about setting standards and expectations, and fines for any tenant who decides to break the lease. Landlords need to accept full responsibility for firmly and professionally enforcing lease agreements. Ensure that leases are air tight, and set out the terms and conditions of your tenants in great detail.
3. Encourage Good Behavior
Successful landlords are both creative and and inventive towards building a successful real estate business. Many landlords specifically build their lease with incentives for good behavior and harsh penalties for bad behavior. Some landlords will give a $100 discount for early rent payments, which brings spectacular results. Also many landlords will charge a 20% service charge on cleaning and damage costs taken from the security deposit. Furthermore, make it very clear that overdue rental payments will incur late fees. The extra income will help compensate for the burden of not receiving the rent on time.
4. Document Details
When it comes to building a successful rental property business, it is imperative to always record any agreements, important conversations, and contracts. Verbal agreements hold no weight, and all contracts must be professionally enforced and signed. In order to protect your interests and the interests of you tenants, always record agreements, contracts, and important discussions in writing.5. Keep Tenants Satisfied
Keeping tenants satisfied and happy with their living experience should be the top priority for all landlords and property managers. Furthermore, keeping tenants happy highly increases the chances of raising tenant retention rates. Retaining tenants is beneficial for landlords, because it removes the time and effort involved in finding and screening new tenants every year. Successful landlords always treat their tenants with respect, respond to issues promptly, and listen carefully to complaints and constructive criticism. Seek to understand their position and and keep in mind how they may perceive your actions.