Being a landlord involves much more than just collecting rent each month. Although it comes with dozens of unique benefits and advantages, there are also responsibilities.
If you’re not careful, you may be exposing yourself to unnecessary risks. From tenant lawsuits to property damage to potentially costly environmental claims, there are plenty of dangers that can put your business and personal assets at risk.
If you want to be a successful landlord, you need to understand the importance of being educated about the law. You also need to be able to get along with many different types of people and be able to handle problems that can occur at any time of the day or night.
Make sure to take time and effort to protect yourself from possible issues, legal disputes, and problems with tenants.
Here are some of the top tips and tricks for minimizing risks:
One of the easiest ways you can do to minimize risks associated with being a landlord is to make sure you document everything. In real estate, it has been commonly said that if it’s not in writing, then it doesn’t exist. This should be remembered at all times. Develop a system for documenting your business, and make sure it is followed.
Absolutely everything needs to be in writing, from who can live in the residence and what activities are permitted, to when rent will be collected and how delinquent payments will be handled. Documentation can also help you in other business situations, such as during a tax audit.
As a landlord, you should regularly inspect your property for dangerous environmental risks. Hazardous materials include lead-based paint, asbestos, mold, carbon monoxide, and radon.
In order to keep your tenants safe, you need to be updated with property maintenance and ongoing issues. When tenants make repair requests, respond promptly. If something is not working anymore or is potentially hazardous, have it inspected and taken care of.
It is important to comply with federal and state laws and to make regular inspections. Your rental must be both in a “fit” and “habitable” condition prior to tenancy.
Screening potential tenants will help you avoid any unnecessary risks. Make sure they are responsible before letting them sign a lease agreement.
Ask them if they have a job or any prior history of evictions. Can they pass a background check? Remember that past behavior is an excellent way to predict future actions. You can also require potential tenants to provide you with three or more references, with two of those being former landlords as they are your best source for information.
Above all else, you have to protect and look out for yourself. It’s important to know where to look and who to trust.
San Antonio Property Management, a department of Real Estate Muses, is a guaranteed pro when it comes to managing your investments. Instead of you handling all of the interactions with tenants, drafting contracts, soliciting rent checks, and other tasks that go along with being a landlord, let us take care of them.
Call me, Scott Wiggans, today at 210-201-6543 for more information on our services!
In case you can not view this video here, please click the link below to view 😉How to
Effectively Minimize Risks as a Landlord on my YouTube channel: https://www.youtube.com/watch? v=smSk-Z0Zf4I&feature=youtu.be
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