Five ways to avoid headaches with tenants(finished)Presentation Transcript
Five Ways to Avoid Headaches WithTenants
If you are a first-time landlord, you have to becareful how you deal with potential tenants.
Having residential tenants can be a soundinvestment strategy, but effectively dealing withthem can be the difference between a profitableinvestment and a costly one. If you are a first-time landlord, you have to be especially carefulhow you deal with both potential tenants andexisting ones
Following are five tips for effectively dealingwith tenants:
1.Thoroughly Check a Tenant’s Background:When interviewing a prospectivetenant, it is very importantto make sure he or she is agood fit with existing tenantsas well as with the landlordor property manager. Reviewthe tenant’s credit historyand check his or her references.
2.Educate Yourself About Tenant and LandlordRights for Your State: The laws from state to statediffer regarding the rights andresponsibilities of the landlord.It is imperative that theinvestor is properly educatedabout his or her rights, butalso about the rights of thetenants. When a landlord-tenant relationship turnstoxic, both parties enter into a no-win situation.
3.Keep the Lines of Communication Open:Communication breakdown is often the rootproblem behind poor tenant-landlord relations.When the tenant calls abouta problem, he or sheshould feel that someone willrespond. This does not meanthat you need to jump out ofbed before the sun risesbecause a faucet is dripping,but you should contact the tenant and set atimeframe for inspection and repair of the faucet.
4.Be Clear About Any Tenant Responsibilities: Dothis before the tenant agrees to the lease terms.As a landlord, you have certain expectations thatyou should have your tenant agree to. Sometimesthat includes basic cleanup,no pets, no smoking, orlawn maintenance. As alandlord, it is important toensure that tenants have aclear understanding of theexpectations included in therental agreement.
5.Protect Yourself From Landlord Pitfalls: Askyourself some simple questions before you leasea property. Is the property in good repair?Will the tenant’s income beenough to pay the rent andutility costs for the unit?Are you satisfied with thetenant’s references andcredit history? Have you thoroughly and clearlyexplained rules and expectations about therental agreement? If you answer no to any oneof these questions, you need to seriouslyevaluate whether you should be renting theunit.
As an investor and a landlord, you have aresponsibility to your tenants as well as to yourinvestment in the property. That responsibilityshould include keeping a property in goodrepair, maintaining the ability to communicatewith tenants and having the ability to qualifyprospective tenants. It is the investors that areable to best execute those principles that havethe greatest opportunity to be successful.