The average landlord owns three properties, and half of them manage these properties on their own. Roughly the same amount of owners have had to ask tenants to leave early due to a lease violation or some other issue.
As a first-time landlord, it's important not to overextend yourself and take on more than you can handle. You also need to know what is legally required of you when you buy property and rent it out, so you can hold both yourself and your tenants responsible.
Here are five tips for first-time property owners and landlords in Provo, Utah.
1. Create a Budget
The first thing you should always do when making any kind of investment is create a budget. Rental properties don't just generate money on their own. You need to pay for things like property taxes, maintenance and repairs, and landlord insurance.
As such, create a budget that takes all of these factors into account before you buy any more properties. You'll also want to maintain a budget as you operate your rentals.
2. Hire a Property Management Company for Help
One of the biggest mistakes a new landlord can make is trying to handle all their tasks on their own. If you own multiple properties, you may struggle to take care of them all equally. The same goes for an apartment building.
A property management company can help manage your properties while you focus on real estate investing or your day job. They have the experience and skills to do everything from maintenance requests to settling tenant complaints.
3. Screen Tenants Properly
It's important to run background checks when you find tenants for your properties.
A tenant's rental history may show that they refuse to follow the rules or struggle to afford rent every month. If their credit score is bad, that tells you they have a lot of debt and may make poor financial decisions. You can also look into their criminal history to see if they've had any recent convictions.
4. Enforce and Follow the Rules
You'll need to enforce the rules if you want your tenants to abide by the lease. That may mean checking in from time to time to make sure they aren't exceeding noise levels or bringing in pets without permission.
As their landlord, you should also perform your duties as outlined in your lease.
5. Keep Digital Records
Always make sure to keep digital records of financial transactions and messages with your tenants. You never know when these things will come in handy, such as if you need to evict someone or defend yourself against legal action.
Find More Advice for Landlords
First-time landlords will often struggle with their responsibilities in their new position. They need to find a balance between staying strict on the rules while also staying approachable to tenants. At the same time, they need to balance a budget to avoid financial problems later on.
PMI Made Simple provides property management services for Provo and surrounding communities. We're part of a nearly 20-year-old franchise dedicated to our clients. Contact us today to schedule a consultation and learn more.
