Becoming a landlord isn't just about owning property and letting other people live in it. It's so much more complicated than that. If you want to be a successful landlord, you need to treat your property as a business and your tenants as your clients. You need to assume the role of a property manager.
And when it comes to property management, you're in charge of finding and vetting tenants, advertising the property, conducting research and screening about prospective renters, creating and carrying out a rental agreement, managing move-ins and move-outs, maintaining the property, and a whole lot more. Making rental property profitable takes work — a whole lot of it. That's why treating your property as a business is imperative.
It requires a full understanding of the law.
Any landlord worth their salt have a full understanding of the Landlord-Tenant Law, but in reality, only a few do. But you know who does? Your tenants. If you want to conduct fair and honest business, you need to have at least an idea of everything the law indicates. You need to comply with federal, state, and local laws. And while you may not always agree with them, following the rules will keep you out of trouble and help you maintain a good relationship with your tenants. Learn them, keep an eye on possible changes, and do your best to be in compliance.
Owning and managing a property can be risky.
There are always risks attached to owning and managing a property. You must always be wary of hazards like exposed wires, leaky roofs, and broken window glass. It's vital that you provide a safe environment for your tenants as offering an unsafe home can be a liability for you. Take care of everything that could potentially harm the renter to take care of your tenants and avoid liability claims that could cost thousands.
You need to secure insurance.
In case you're not aware, there's a difference between homeowner's insurance and landlord insurance. Homeowner's insurance covers the property if you yourself are living in it, while the landlord's insurance is for protecting against any mishaps that occur in the property occupied by a tenant. It's also advisable to secure tenant liability insurance which protects you against tenant negligence.
It's your responsibility to conduct regular maintenance.
Items in your home tend to wear out as time pass by, rendering them inoperable. You have to be prepared when that happens, and you need to have an action plan quickly when it does. You don't want something to go wrong and have the tenant abate their rent because you didn't resolve the issue fast enough. For repairs cause by habitability, regardless of how big or small it, you have to prepare ahead of time.
Being proactive, planning ahead, and treating your investment property as a business is the secret to becoming a successful landlord. If you're based in New York and need help with property management, get in touch with us. We'd be more than happy to be of assistance.