Real estate and property management is inarguably one of the most lucrative ventures today. With the current demand for houses skyrocketing, many entrepreneurs and investors are now putting up new houses with the hopes of selling or renting them to the already existing expansive market. Although the subsequent ROI is largely dependent on your type of property and pricing strategy, it’s also significantly reliant on your management skills- especially if you’re a landlord renting out property.
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A landlord is usually the main stakeholder in a piece of property, usually a condominium, apartment, house or land which is leased to a tenant. To comprehensively protect his/her business, a landlord is expected to effectually manage his/her and the tenants’ interests. Here are a few tips on how to do this:
Screen Your Tenants
Gone are the days when a simple handshake was enough to seal a deal. Due to the increasing number of problems caused by rogue tenants, it has now become critically important to screen prospective tenants before letting out property. You should therefore individually assess all your prospects according to their credit histories, relationships with past landlords, criminal record (if any), and general attitude, especially towards property owners and managers.
Always Have it In Writing
For legal purposes, ensure all communications with your tenants, including rental agreements, repair problems, and tenant complaints are put in writing. This always comes in handy when you need to refer to past communications.
Make Prompt Repairs
Although it’s majorly used by tenants, the property will always entirely belong to you. You should therefore take good care of it by conducting relevant and prompt repairs when required. Failure to do so may alienate even the good tenants, subsequently giving them reasons to sue in case of injuries or move out without issuing requisite notices. In some cases, tenants may withhold rent, repair defects and eventually deduct the repair cost from rent.
Provide Adequate Security
In a world where burglary and robbery cases are consistently on the rise, it’s very important to provide adequate security in your premises. Install CCTV cameras, proper lighting, alarm systems and intruder detection systems. This should be done after consulting a reputable security firm for risks analysis and subsequent mitigation measures.
Disclose Environmental Hazards
Finally, remember to disclose all the environment hazards related to your property. This will save you probable legal actions for exposure to environmental toxins or health problems when tenants uncover hidden environmental hazards.