Approximately 10.6 million people in America get passive income from rental properties. As the demand for rentals keeps increasing, so does the number of rental property owners.
To be a good landlord, you must have ample renting knowledge. You're also required to have the right tools to simplify the process.
Your duties include performing routine maintenance and advertising vacancies. You must also be keen to collect rent, pay taxes, and observe local laws.
Managing a rental unit for the first time can be overwhelming. Read on for five expert tips you need to know as a rental property owner.
1. Find the Right Tenants
Marketing your properties strategically will reduce rental turnover rates. This is because you’ll have the right people for that particular neighborhood.
Track rental trends in different areas to know the various neighborhood crowds to appeal to. Most people in Dallas look for their next apartment online. Thus, find software that markets your rental unit across several websites.
Applying this strategy means you'll have fewer vacant properties at any time.
2. Screen Prospective Tenants
When tenants are completing the online rental applications, begin screening them. Conduct credit, eviction, and background checks to get in-depth information.
Research local landlord-tenant laws before putting tenant screening in the application process. This is because some states limit how much landlords can screen prospective tenants.
Are you interested in outsourcing tenant screening services in Dallas? HomeRiver Group will help you identify the most qualified prospective tenants for you.
3. Create a Rental Lease
As a rental property owner, you need to create a rental lease agreement. A lawyer should review it to ensure that it follows local ordinances. This measure ensures the protection of all parties involved.
Contents of the lease should include clauses that protect both landlord and tenant. The monthly rent amount and security deposit should be in agreement as well.
4. Invest in Landlord Insurance
Homeowners insurance protects you from property damage, income loss, and liability. On average, a landlord insurance policy in Texas costs between $850-$2500.
Landlords use different insurance types to protect their rental properties. If your coverage is extensive, your rental unit will have protection from more things.
5. Manage Your Monthly Rental Income
As first-time property owners, put your rental income in a separate bank account. This measure simplifies the task of tracking payments and accessing records for tax purposes.
What Every Rental Property Owner Should Know
Renters occupy a large number of households in Dallas. Although owning a rental property is beneficial, managing the units still takes a lot.
It can be daunting to perform your roles as a rental property owner professionally. But with a management company, you can manage your rentals without sacrificing too much time and money. This will save you a lot of stress and offer convenience to both you and your tenants.
If you’ve enjoyed reading this article, contact us for more tips on real estate investment.