Property investing strategies for the typical investor will eventually, at some point, involve buying rental properties and dealing with tenants. Most investors who stay in the market long enough will usually at some point learn this set of property investing tactics sometimes referred to as “landlording.” Renting out property isn’t as difficult as it seems on the outside. Buy to let investors of all skill levels are more often than not able to develop and maintain a successful rental property business.
To Allow Pets or Not to Allow Pets?
Property investing tactics with rental properties will eventually involve the issue of pets. Buy To Let properties do see some pretty high turnover, and it’s essential to try and keep that property investment in the best shape possible so that it will keep bringing in a good monthly rent. If the tenants of a nice property have a dog or a cat you run the risk of a major mess to clean up after the tenants vacate. You can charge a pet deposit for clean-up but there may be more damage than is covered by the deposit and it always takes precious time which could be filled with another paying tenant.
Renting to Larger Families or Groups of People
Although some property investing approaches regarding rental property and multiple tenants can go smoothly but sometimes there can be unanticipated issues. It’s important to make sure you don’t rent a single property to too many people at once. There are also fire laws and regulations to keep in mind that limit the number of people who can stay in a certain sized home or apartment. These laws vary from state to state. It is a good policy to always keep this in mind because the laws are do frequently change.
Checking with the Previous Landlords Plural
Most rental applications request information on the tenant’s current landlord for a reference check. You may also want to check with the applicant’s “previous” landlord. This gives you more than one opinion on whether or not the applicant is a good fit for your property investing strategy. While there are laws limiting how much information you can request from the previous landlords , it’s usually safe to ask them if they would rent to that tenant again. What they say will usually give you information on whether you may or may not rent to that particular tenant.
Most of All Consider Your Intuition
If you are uncomfortable with your potential tenants during an interview it is possible you’ll be uncomfortable with them for the entirety of the lease . Intuition can also help you figure out which tenants are responsible people who can pay their bills on time and which tenants may be too young, irresponsible or just plain won’t care about paying the rent once they get in . Remember you are the one who is taking the risk with property investing and so limiting other distractions like choosing the wrong tenant will serve you in the long run.
When you start taking applications for rental tenants, consider these previous property investing tactics regarding tenant selection. They will help you avoid a bad, difficult or non-paying tenant and improve your rental experience. Your rental property will remain looking nice and continue bringing in the higher rents over time.