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8 Tips for Rental Property Owners
Owning a property that you rent out can be a smart way to earn money in addition to your day job income. Owning several properties can become your main source of income. But being a landlord isn’t without its headaches.
You’ve got to find good tenants. You’ve got to keep them happy. And the rental property needs to remain in excellent condition. Fortunately, there are several tips for rental property owners that make the process smoother and less stressful. Follow these tips and you can look forward to less time worrying about your rental property and more time enjoying the extra income.
Tips for Rental Property Owners
1. Screen Your Tenants
You probably have an idea of what your ideal tenant looks like, but you still need to perform a thorough background check. This will make sure they are not withholding any surprises. You can screen tenants by asking for their credit report, proof of employment, and references. You can also search your state court database for a criminal record. If this all sounds too time-consuming, you can pay a company to do this for you.
2. Have Your Paperwork in Order
You require a written lease agreement that’s been signed by both parties. This ensures that the tenant knows exactly where they stand with you and vice-versa. It’s also going to help you if there is a dispute.
Provide an up-to-date inventory of any items in the property and their condition, too. This can also include the condition of the decor, doors, windows, and built-in units.
3. Set the Right Rent Price
Do some research for your area and the type of property you have. Then set the rent price accordingly. If you set it too high, you won’t get many applications. By setting it at the market rate or slightly lower, you are more likely to attract a large pool of prospective tenants to choose from.
4. Be Fair But Firm
Unreasonable rental property owners will lose themselves good tenants. Lenient ones are more likely to be taken for a ride. You need to be somewhere in the middle.
Don’t put up with late rent payments or intentional property damage. Should the need arise, make sure your tenants know that you will follow through with eviction notices or late payment fees. Similarly, if something needs fixing or sorting out in the property, deal with it promptly. Don’t let your tenants suffer unnecessarily or have them live in unsafe conditions.
5. Get Animal Liability Insurance
If the tenant will be living with a pet, then the rental property owner or tenant should have animal liability insurance. Landlords or property owners need coverage in case an animal causes third party injury or property damage. Same goes for the tenant. See your local laws about animal liability insurance requirements.
6. Keep Money Aside for Emergencies
Just like the property you live in, your rental property is going to suffer the occasional issue. Good rental property owners know they need to keep some money aside to cover these eventualities. You never know when the heating system might break, when a plumber may be required, or when faulty wiring may need fixing.
7. Don’t Just Show up
The normal Notice of Entry rule is 24 hours. This means you can’t just arrive at the property unannounced expect to be admitted. Arriving without notice means you’re not keeping up your end of the lease agreement, and your tenants won’t be happy. Play by the rules and give your tenants sufficient notice that you intend to stop by.
8. Get Habitational Insurance
It’s a litigious world out there. Rental property owners need to protect themselves. This is why one of our most important tips for rental property owners is to have insurance. The right insurance will mean that you’re protected should your tenants wish to sue you for a liability claim. A customizable coverage is best, like our habitational insurance.
XINSURANCE is powered by Evolution Insurance Brokers, LC (“EIB”), an excess and surplus lines insurance brokerage. We look at your experience levels and operations to determine the level of coverage you need. Even if you have a claims history or have been refused coverage in the past, XINSURANCE can help you.
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If you would like to hear more about our tips for rental property owners or understand how our habitational insurance can protect you, then get in touch today:
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Hopefully, our tips for rental property owners will help you let your property with minimal stress. And with XINSURANCE’S landlord coverage, you have that extra layer of protection too.
Authored by Rick J. Lindsey, President, Chairman, and CEO of XINSURANCE
Rick J. Lindsey hails from Salt Lake City, Utah. He began working in the mailroom of his father’s Salt Lake City insurance firm, getting his introduction to the business that became his lifelong career. Rick J. Lindsey quickly rose through the ranks while working in nearly every imaginable insurance industry job. As an entrepreneur, specialty lines underwriter, claims specialist, risk manager, and a licensed surplus lines broker, Rick J. Lindsey is highly skilled in all levels of leadership and execution. As he progressed on his career path, Rick J. Lindsey discovered an urgent need for insurers willing to write policies for high-risk individuals and businesses. He was frequently frustrated that he could not provide the liability protection these entities desperately needed to safeguard their assets. He also formed the belief that insurance companies acted too quickly to settle frivolous claims. Rick J. Lindsey decided to try a different approach. He started an insurance company and became the newly formed entity’s CEO. This opportunity has enabled Rick J. Lindsey to fill a void in the market and provide a valuable service to businesses, individuals, and insurance agents who write high-risk business. XINSURANCE also specializes in helping individuals and businesses who live a lifestyle or participate in activities that make them difficult for traditional carriers to insure. If you’ve been denied, non-renewed, or canceled coverage, don’t give up quite yet. Chances are XINSURANCE can help.