What It Means to Be a Property Owner

What It Means to Be a Property Owner

Being a property owner can be a very daunting task. Be it commercial business unit or residential house, it is very important to effectively manage and care for them else you run into all sorts of trouble. Effective managing of property can save time and consequently money, as time is money. These are all a part of what it means to own property.

Below are some tips to effectively manage your property as a landlord.

1. Make your tenants get renters insurance.

This is something that is often overlooked by most landlord’s. You might feel there is no need for this but what if your tenant does greater damage to your property than the security deposit can cover? Who then pays for it? You off course! However getting your tenants to get such renters insurance will help cover this damage or even serve as compensation if your security deposits does cover it.

2. Make your property an LLC

It is very beneficial to set up LLC’s for each of your rental property if you own more than one. This will seriously shield your personal assets from rental property related litigations of all kinds. It will protect you from lawsuits damaging effect if the need arises.

3. Always document your property’s condition.

Most landlords usually do not see the need to do this but this can go a long way in saving you money and protecting you during lawsuits. First of all ensure to take pictures and videos of your property before a tenant moves in. Then take pictures and videos when they move out and compare. If there are serious damages done to your property, you now have evidence of it and can stand strong in the court of law. It is also very important to tell your potential tenants the current truthful condition about your property before moving in. Have all records of invoices, receipt’s and job description’s. This way when you are challenged by tenant’s for withholding security deposits you can easily defend yourself.

4. Do your repairs immediately.

It is very important to make prompt repairs to damages in your property. This will prevent further damages to that same place. For instance, if there’s a leak anywhere and you fail to attend to it quickly, it tends to grow molds which spread around and cause more damages. Making prompt repairs also let’s your tenants know how serious you take your property’s condition. This will make them more cooperative.

5. Don’t ignore pet clauses.

Pets are important members of certain families, some people can’t do without them. It is important to have certain clauses down if you are going to allow pets in your property. This type of clause needs to be strict as pets tend to do severe damages to properties. Ensure that you and your tenant agree on an acceptable pet deposit and be very clear the type of pet you allow.

6. Screen your tenants.

Before you rent out your property to any tenant, always ensure to do proper screening. Most landlords tend to overlook the importance of screening during tenant turnover. Ensure to check tenants credit history, references and do proper background checks. Haphazard or half done screening of tenants often result to late rent payment by tenants and those who don’t pay at all. Some even end up trashing your place. Always use written rental application to properly screen your tenants.

7. Give notice before entering any unit.

Most landlords do fall short in this area. They believe since they are the owner of the property, they can enter any unit they want without notice. This is wrong. It is a good idea to always give notice of your coming some days or hours before visit to any unit. This not only makes you responsible but increases the level of respect tenants have for you hence giving you more power when taking actions.

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