Renting to Tenants: Tips for New Landlords

Renting a home to a tenant is a big responsibility. If it's your first time being a landlord, you may have much to learn to succeed. You'll need to know how to make the home attractive and comfortable for your tenants. You'll also need to learn how to treat your tenants fairly and lawfully, according to the laws of your province. These tips can help you become a better landlord to your future tenants.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Prepare the Home

Before tenants can occupy the home, it must first be made ready. There are many things a landlord can do to prepare their future home for tenants.

Make Safety Improvements

There are many things that a landlord can do to remove safety hazards from their rental property for tenants.

• Install smoke detectors in every room and hallway
• Install a deadbolt on exterior doors
• Install a motion-detected light on the garage and at the front porch
• Repair any broken stairs, railings or windows

These safety improvements can help a tenant live safely in a home without injuries or accidents. A landlord who would like to help ensure that their tenants can be safe can do so by conducting a walk-through inspection and looking for ways a potential tenant could become injured. After making a list of identified problems, the property owner can make repairs before listing the house for rent.

Repair or Replace Broken or Aging Systems

Tenants need heat, hot water, a sound roof over their heads, and adequate plumbing to deliver water. In an older home, many systems may need to be repaired or replaced for the tenant to have what they need to live comfortably.

The best way to identify the repairs that should be performed on a home is to get a home inspection. A good home inspector can pick out which appliances are not working properly and use that information to repair them as needed. In some cases, systems may not need to be replaced yet but should be replaced soon. If this is the case, landlords should start saving as soon as possible to ensure they're ready to make the repairs when the time comes.

Establish Policies in Advance

Landlords need policies in place when they're ready to take in clients. Will they accept pets? Do they require a rental deposit? How much will they charge monthly? All of these things must be decided in advance so that the landlord can establish expectations at the outset of the tenant/landlord relationship.

Work with a Lawyer

A good lawyer can help the landlord write a legal leasing contract that is fair for all parties involved and adequate for the property owner's needs. Landlords don't often need lawyers, especially if they're already working with a residential property management company, but working with a good lawyer to write a contract can help make renting to tenants easier.

Screen Tenants

Proper screening of tenants can help the landlord avoid entering a legal agreement with a problem tenant. During the screening process, landlords are allowed to:

• Check references
• Check credit history
• Ask about income
• Ask about employment

A lawyer can help a landlord establish fair and legal screening policies. This is another good reason to work with a good lawyer.

Hire a Professional Property Manager

Renting homes to tenants can be lucrative for landlords, but it also comes with various challenges and responsibilities. Many landlords opt to work with professional property management companies to ease the burden and ensure efficient property management. Here are some key advantages of hiring a property manager:

• Effective Tenant Screening: Property management companies have the expertise to screen potential tenants thoroughly. Through background checks, rental histories, and credit assessments, they can find reliable renters, reducing the risk of late payments and property damage.
• Reduced Vacancy Rates: Property management firms can attract prospective tenants quickly with their marketing expertise. Minimizing vacancy periods helps landlords maintain steady rental income and maximize returns on their investments.
• Expertise in Rental Laws: Property managers are well-versed in landlord-tenant laws and regulations at federal, state, and local levels. Their knowledge ensures legal compliance, avoiding potential disputes and costly legal issues.
• Efficient Rent Collection: Property management companies employ streamlined rent collection processes, ensuring timely payments and proactively handling late or delinquent tenants.
• Timely Property Maintenance: Maintaining the property's condition is crucial for tenant satisfaction. Property managers oversee regular maintenance and prompt repairs, which can lead to higher tenant retention rates.
• Objective Conflict Resolution: Property managers act as neutral third parties in disputes, facilitating amicable resolutions and maintaining positive landlord-tenant relationships.
• Financial Management and Reporting: Property management firms provide detailed financial reports, giving landlords insights into their property's performance and helping them make informed decisions.
• Peace of Mind and Convenience: By entrusting property management responsibilities to professionals, landlords can enjoy a more hands-off approach, freeing up time for other pursuits.

Get Help Buying a Rental Home

A person who wants to become a landlord and is unsure what kind of property to buy should work with a good real estate professional. A real estate agent can help the future landlord to identify a property that would be good for the needs of the tenants and the landlord. To get started, contact an experienced and reputable real estate agent today.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.