3 Things You Need to Know Before Becoming a Landlord

Updated September 27, 2022.

Being a landlord is an exciting and rewarding experience, but it can also be stressful. As you get started, there are many questions to ask and answer, like "What property do I buy?" "How do I calculate my return on investment?" "What are the day-to-day tasks required of landlords?" "What does a property manager do?" "How do I find the right rental management company?" The list goes on.

While our Boston property management experts can't answer all of those questions today, this blog post will walk you through three critical things you need to know before becoming a landlord!

1. Your Budget

As you search for a profitable real estate investment, it's essential to put together a budget that will help maximize your ROI (return on investment).

A thorough budget includes:

• Initial costs (property sale price, closing costs, etc.)

• Landlord Insurance

• Estimated renovation expenses

• Marketing and screening costs

• Other ongoing operating costs

Different real estate investors may have varying expenses, expenditures, and anticipated earnings. However, knowing how much you can spend or finance on a property, then your anticipated returns, is an important aspect of setting yourself up for success. 

2. Where (and How) To Learn

Whether you've found a property that piqued your interest or you're still looking for the ideal first investment, start learning everything you can about being a property owner now. Being a successful landlord requires more than just buying a property and putting a listing on a rental website. Most first-time property owners quickly realize that they never considered many tasks before getting started!

If you're sure what you don't yet know, a Boston property management company can point you in the right direction. Find resources to learn everything you can about these to-do list items for landlords.

Marketing Your Rental Property

Once you've purchased a property and got it ready for your first tenant, you'll need to start marketing it. Your rental listing should contain information that will attract high-quality tenants. Some items to include in a listing include:

• Rent and security deposit amounts

• The number of bedrooms and bathrooms

• The size of the house in square footage

• What appliances are included

• Whether you allow pets or not

Do a little research on what other property listings contain in your area, work with local property managers to find out what might interest potential tenants, and use this information to market your rental well!

Finding the Perfect Tenant

For any landlord, picking the perfect tenant can be a make-or-break issue. That's why learning how to conduct a thorough and accurate screening of employment history, income verification, background checks, credit checks, and other factors is so vital to your success! If you're trying to discover the best way to use tenant screening, a professional property manager is an excellent resource. They can also help you comply with Fair Housing laws when screening potential tenants. 

Creating Effective Residential Lease Agreement

If you skip over this critical aspect of operating a rental property, you could put your investment properties and income at risk! The residential lease agreement is a crucial legal document that establishes the rules and requirements for tenants throughout the lease term. The rental agreement also covers your responsibilities as the landlord. 

To protect your rental properties, you need airtight lease agreements. Having a thorough lease agreement template can help ensure that you leave nothing out. An Eastern Massachusetts rental management company has all the tools and know-how necessary to put together a lease agreement.

Getting Your Property Ready for a New Tenant

Just like the leasing process, each move-in should be uniform. A landlord should prepare a move-in checklist for a new tenant to ensure everything goes smoothly when a new tenant takes the keys and moves into the home. Having a make-ready checklist can also help property owners handle every clearing and repair task before new residents move in. 

Maintaining Rental Properties

When your renter has finally settled in, you may think there's nothing left to do but collect the rent! However, there are still many tasks on your list, including conducting routine maintenance services, tenant communication, and responding promptly to repair requests. Therefore, property owners must learn how to handle repairs or build a network of contractors to handle these responsibilities.

3. Local, State, and Federal Laws

The rules that govern the landlord-tenant relationship come from federal, state, and local laws. A successful landlord must stay updated on current regulations and how they apply to their properties. The best way to do that is by partnering with a property manager who handles these things for you!

Get Started With the Right Knowledge and Resources

Being a landlord is an excellent way to build long-term wealth! Get started with the right knowledge and resources to help support a profitable venture into residential real estate investing. If you're looking for one of the best resources in Boston, CHARLESGATE Property Management is here! Our team loves helping new landlords get started the right way for long-term success. Reach out to learn more about our property management services!