If you’re thinking about becoming a landlord, there’s some information you should know before you take the plunge. Landlording isn’t for everyone, but it can be extremely lucrative if done properly. However, many pitfalls can be avoided through proper research and planning. This article will discuss what it takes to become a landlord and what you need to consider before taking on this role.
Check out your tenants before they move in
As a landlord, you must check your tenants before they move in. You need to do this for multiple reasons, but mainly because it’s your responsibility as a landlord and it can help you avoid letting someone unsuitable move into your property.
Here are some tips on what questions you should be asking them:
- References – Make sure their references check out! This means calling previous landlords or employers and asking about the tenant’s behaviour (do they pay on time? Do they treat the property well?) If you can’t get hold of anyone, then don’t take them as a tenant.
- Credit history – Ask if they have any credit cards or loans they need to pay off. If this is the case, then it is advisable finding someone else who doesn’t owe money elsewhere. This is important because if your tenant doesn’t pay rent, he might not be able to afford other bills either!
Limited company holiday let mortgage is also in trend. Holiday let mortgages are for properties being let out on a short-term basis or as holiday accommodation.
Take safety precautions and thoroughly investigate a potential tenant’s past
- Check the tenant’s credit score.
- Ask for references.
- Require proof of income, such as pay stubs or W-2s.
- Ensure they have a clean criminal record (you can do this by doing a background check on them).
- Check their rental history and see if they’ve been evicted before (you could ask a landlord or property manager to run this search for you).
- The next step is to decide what type of lease agreement you’ll offer your tenant.
Do background checks to make sure that they have no prior criminal history
You can use an online search service to find out if your prospective tenant has any criminal history. These services can tell you whether they have been convicted of a felony or misdemeanour and if they are registered sex offenders. If there is anything negative in the report, you may decide not to rent them.
If there is no information on the applicant’s background check, it does not necessarily mean that they have never committed any crimes. It just means that there isn’t any public record of it yet. However, you should still do thorough checks on your potential tenants before deciding whether or not you want to rent out your property to them.
Set up boundaries in your lease agreement so that everyone is clear on the expectations
Landlords should include a clause in their lease agreements that limits the number of pets, smoking and noise. If you want to prevent your tenants from having a noisy party every weekend, include this in the lease agreement. You can also set up boundaries around security deposits.
The first step in becoming a landlord is conducting the proper research. Take some time to learn about the responsibilities and risks of owning rental property. Then, once you feel confident that this is something you want to do, it’s time to start looking for properties!
