How successful you become as a landlord will depend on a number of things. One being how you are able to keep your investment safe to protect its value.
The following are 8 tips to keep your home (and investment) safe.
1. Familiarize Yourself with the Landlord-Tenant Laws
When you begin renting out your property, you must abide by certain rules. You become obligated, for instance, to abide by the state’s habitability laws. The landlord-tenant laws require landlords to rent out a property that adheres to certain health and safety codes.
Among other things, you are required to provide a rental home that has:
- Working carbon-monoxide and smoke detectors.
- Working plumbing and sanitation facilities.
- Running hot and cold water.
- Properly functioning electrical outlets and wiring.
- Pest-free premises.
- Mold-free premises.
If you are just getting started and are not familiar with your state laws, it may be best to just hire a property manager.
2. Secure Your Rental Property
It’s important that you have security measures in place before you can start renting out your home. By doing so, you’ll not only be protecting tenants and reducing the risk of vandalism, but you’ll also be increasing the desirability of your property among prospective tenants.
- The following are some tips to help you boost your rental investment’s security.
- Secure main doors with high-level security locks such as strong deadbolt locks.
- Add window locks. You may also add window sensors to alert the tenant whenever it has been tampered with.
- Install a security system that can sound an alarm whenever there is unauthorized access to the property.
- Have the right insurance policy.
3. Conduct Regular Safety Checks
This includes checking fire and carbon monoxide alarms to ensure they are working as they should. This is an essential way to ensure your rental property is safe against certain perils. The right policy is one that protects you as a landlord as well as your investment.
Generally speaking, a landlord’s insurance policy provides coverage for liability claims, property damage, and rental income. Optional covers may include vandalism, burglary, and vacancy coverage.
Make sure to talk with your insurance agent to know which cover works best for your individual needs. Having the right cover will give you peace of mind knowing you have protected yourself and your property against certain potential liabilities.
4. Require Your Tenants to Have Renter’s Insurance
A landlord’s insurance won’t cover the tenant and their belongings against any perils. For their own protection, require a tenant to have renter’s insurance as part of the move-in requirements.
Renter insurance covers things like water, theft, backup damage, bodily injuries, and certain natural disasters. On average, renters’ insurance costs about $15 to $20 per month. However, what a tenant may end up paying will depend on multiple factors.
5. Maintain the Property Regularly
Regularly maintain the rental property to ensure everything is working as it should. You will be able to identify issues as soon as they come up, thereby minimizing the repair costs and protecting the property’s value.
You’ll also be able to ensure your rental property is up to code when it comes to safety. As previously mentioned, landlords are responsible for abiding by certain safety and health codes.
As a landlord, there are four types of rental inspections you can conduct during a tenancy. That is, move-in inspections, seasonal inspections, drive-by inspections, and move-out inspections.
And before entering the tenant’s unit to conduct either of these inspections, make sure to notify them first. Provide them a notice at least 24 hours beforehand.
6. Screen Every Prospective Tenant
Renting to just any tenant is a risk to the safety and security of your investment property. You’ll want to choose tenants carefully, only allowing those that have passed your screening procedure.
To choose the right tenant, screen prospects based on their income level and creditworthiness, as well as their employment status, criminal background, and rental history. This should help you find a tenant that will pay their rent on time, care for their rented premises, and honor their lease obligations.
It also goes without saying that your screening process should abide by the Fair Housing Act. Treat every prospect fairly and equally regardless of their race, color, religion, nationality, sex, disability, and familial status.
If you are not familiar with the Fair Housing Law, consider hiring an expert property manager to do the screening for you. The last thing you’d want is to hurt your reputation and/or get yourself embroiled in legal issues.
7. Cultivate Good Relationships with Neighbors
Solidify your relationship with neighbors. This way, you can count on their help to look after your property when it’s vacant. A vacant property is usually at risk of a number of perils. Including, fire, water ingress, vandalism and theft, and squatting.
And since vacancies are inevitable in the career of any landlord, you’ll want to have someone you can trust with your investment when it does occur.
That said, the best way to protect an investment is by hiring an expert property manager. Speaking of a property manager…
8. Hire a Reputable Property Manager
Your investment is now a business. And for a business to thrive, it needs to be managed by a qualified person. If this is your first investment, chances are that you don’t have the skills, experience, and local real estate market knowledge to run a successful investment.
And this is where a reputable property manager comes in. A good property manager can help you handle everything. From marketing the property, to screening tenants, to collecting rent, to handling paperwork. You won’t have anything to worry about!
Bottom Line
These tips will ensure you have peace of mind and run a successful investment property. If you need expert help in managing your property investment, Legacy Realty & Management can help. We are known for providing quality property management services in Denton County. Get in touch to learn more about our services!
