Thinking Of Becoming A Landlord
Category Hendra Knows
Thinking of renting out your property? Here's what you need to know before
becoming a landlord.
Whether you've deliberately made the decision to invest in buy-to-let property or you
have a cottage on your property and you've found yourself in a position where you'd
like to start renting out a home, it's crucial that you understand your responsibilities
and what it entails to be a landlord before you welcome your first tenants.
Run the numbers
Does being a landlord actually make financial sense for you? It's the most obvious
question for any business owner, and make no mistake - when you're a landlord,
you're running a business.Consider all your costs, including your bond payment, insurance, repairs, marketing,
and the value of the time you'll spend managing everything. Then, compare similar
rental properties in your area for a clear-eyed look at the kind of monthly income you
can reasonably expect.
Prepare for management and maintenance
Depending on the lease agreement, you could be responsible for a wide variety of
This could mean repainting some chipped paint or fixing a burst geyser. Make sure
that you plan for any unexpected expenses by putting some money away each
Understand the legalities
Becoming a landlord isn't something that should be taken lightly. The best way to
avoid any problems is to do things "by the book". Make sure that you do research
into the legalities of renting out your property - find out what your lease needs to
contain and what your terms and conditions should include.
Need help? Contact Hendra Estates for fuss-free renting.
Find good tenants
Good tenants are the most integral part of being a landlord. They can be the
difference between positive and negative cash flow. They can make being a landlord
a breeze or make it a nightmare. Since they're so important to your long-term real
estate investment, make sure you find the right ones.
In order to find the right tenants, you will need to screen them before they move in.
To make this process easier, many landlords will employ an estate agent to handle
the screening. If you are considering becoming a landlord, contact Hendra Estates to
handle the renting process, so that you can rest easy with peace of mind.
If you do screen tenants yourself, here's what you should look for and require as part
of the application process:
● A credit check
● Employment verification
● Prior landlord references
● Payslips to ensure they can afford the rent
● And, of course, trust your instinct
Finding the right tenants is important, but don't forget to cultivate your landlord-tenant
Becoming a landlord can be daunting, but it can be very rewarding at the same time.
If you're looking for an investment property to rent out or if you have an existing
property you're wanting to rent, then contact a Hendra agent to help guide you along
Author: Wayne Hendra