Being a landlord is not easy, but it can be very rewarding. If you’re responsible and thorough, being a landlord can actually be quite profitable and low-stress. Here are some tips for landlords and rental property owners to follow:
Before You Rent Your Property
Before you rent your property, be sure to:
- Make sure the property is in good condition. This means making sure everything works and is clean. It also means that any damage or wear in the unit has been repaired or replaced. You don’t want to be responsible for paying for repairs after you’ve already rented it out!
- Make sure your rental property is up to code. The city or municipality where your rental property is located will have an inspector who periodically checks on homes that are being rented out and can tell you what’s not up to code (and how much it would cost to fix). If anything major is found, then you’ll need to make those repairs before renting again—and if there are multiple issues, then maybe this isn’t the best time for a tenant after all…
Two important documents to have in your possession
· A lease agreement. The first paper you should have in your possession when you find a tenant is the lease agreement. This document will outline everything from the rental price, term of tenancy and conditions of occupancy. It’s important that both you and your tenant understand what’s expected during the duration of their stay in your property.
· A move-in checklist. If possible, create a move-in checklist for each new tenant so that they can check off each item as it’s completed or purchased during their time living under your roof. This will help ensure nothing gets lost or forgotten during move-in day and keep everyone on schedule throughout this process!
When You Rent Your Property
When you rent your property, there are a few things to keep in mind:
· Make sure the tenant is good for the property. You want them to pay their rent on time, take care of the place when they’re not there and treat it like their own home. You also don’t want them breaking things or causing damage that isn’t covered under their lease agreement.
· Make sure the property is in good condition when they move in so that you don’t have to deal with any disputes down the road about who caused what damage or how much it will cost to fix something broken by either party involved (you or them).
· Check references before you rent out your house — especially if it’s an investment property where you won’t live there full-time yourself!
Rental property owners should have a verified quantity surveyor in Brisbane check the structure and all aspects of the building for defects, including the roof, plumbing and electrics. They will also conduct tests on the soil surrounding the building to determine whether it is safe for people to live in. They should also test the water supply to ensure it is not contaminated. If a landlord or rental property owner can afford it, they should consider having an architect draw up plans for improvements and repairs. This may help them get a better price if they decide to sell the building later on.
Rental property owners should ensure that any rental agreements include details about what maintenance responsibilities are expected of both parties. This should include any repairs needed as well as who will pay for them. The agreement should also state what happens if one party fails to keep up their side of things after receiving notice from the other party.
Take care of your taxes
Rental property owners are responsible for paying taxes on their rental income.
Take care of your taxes. If you fail to pay your taxes, you could lose the property, be subject to penalties and interest, and face criminal charges.
Don’t forget about state income taxes. Some states require landlords to pay state income tax on the rent from their properties. Check with your state’s department of taxation for more information.
Setting up a formal lease agreement is necessary for the safety of your property and the safety of the tenant
A lease agreement is a legal document that legally binds both parties to the terms of the contract. It’s important for you, as a landlord or rental property owner, to understand what your rights are under state law and federal regulations.
You may have heard that lease agreements are optional in some states. A lease agreement protects both parties when it comes to their rights and responsibilities during the rental period — so it makes sense that you would want one written up!
With an official lease agreement on file, you’ll be able to:
Protect yourself from liability claims related to injuries sustained off-premises (for example if someone gets hurt because of faulty stairs or poorly lit hallways).
Have documentation should there ever be any disagreement over damage done by either party (e.g., arguments about whether pets caused damage).
Being a landlord is not only a great way to make money and invest in property, it’s also surprisingly low-stress. If you follow these tips and keep your tenants happy, then the process can be smooth sailing all the way!