With the recent collapse of the housing market, many potential investors with reserved cash or successful access to a credit line are trying to grab incredible deals for residential properties through real estate investments.
While this may sound like an easy way of earning money, such an investment requires adequate measures in order to sustain the benefits in the longer run.
As you buy a house, make some changes and renovate it, and then rent it out for a monthly fee, you must think with the mindset of a businessperson rather than as a first-time landlord.
If this is your first experience of being a landlord and you want to gain maximum returns on your investment, let us assist you by discussing some common mistakes made by many landlords and the ways to overcome these issues before you rent out your property.
Trusting a handshake
In the real estate industry, you cannot rely on or close a deal, simply by trusting the words spoken by your tenant. In order to protect yourself from legal formalities or complications, make sure you keep formal documentation of each transaction and sign an agreement with the tenant to allow residency, as per the defined terms. Moreover, make sure you comply with state laws regarding lease agreements, because if a legal issue arises, you would need to present all such documents before the legal authority.
Screen the potential buyers thoroughly
It has commonly been observed that every first-time landlord wants to have their property rented at the earliest. To achieve this purpose, many landlords rush to close a deal and miss out on the process of screening the buyers.
Before you choose a buyer to rent out your property, make sure you check their credit history. While credit score is not the only defining factor, you will have to look for the buyer’s credibility, the size of their family and similar other factors so that you can maintain a healthy landlord-tenant relationship throughout the tenancy.
Make sure to collect rent on time
When you wish to build healthy and friendly acquaintances with your tenants, it may not be easy to collect property rent on time. While your tenant might take a few days to make the payment in the first month of tenancy, it might become a partial payment in the case of switching jobs, and ultimately, you might realize that your tenant is now three months behind in making rental payments.
Although you should not speak to your tenants sternly, in order to collect the payment on time, asking them respectfully and firmly to make the payment is a good way to maintain friendly terms with them.
Visit your rented property
Once you rent out the property, you must still take responsibility for it. Make sure to visit the property once in a month to follow up with any issues or problems that your tenants are facing, or creating, for your property. If you remain negligent in this part, then you will not be able to blame your tenants for any issue, if it arises.
If you want to get some more information about the real estate in Columbia, SC, then head over to I Sell This Town.