Being a landlord comes with very many responsibilities. Many people have inhibitions about managing rental properties. One must do several things before their property becomes ready to host tenants. Looking through all these tasks is wise for every landlord because it sets them up for success.
You could work on these items alone, but it is better to hire a team, especially if your property is large. Better yet, you can pay real estate management companies to handle the work, which leaves room for you to run other businesses.
1. The potential market for their property
Landlords depend on finding a suitable market for their rental properties. As such, they must focus on clever marketing techniques. By doing that, they will attract many interested parties and acquire new tenants from the pool of potential clients. Landlords should consider listing their properties on a website with Nairobi rentals. That way, anyone searching for a house to rent online in Nairobi, Kenya, can easily find them. Another strategy would be to outsource the marketing process to an advertising company and let them do the work on your behalf.
2. Profitability of the business
Treat your properties like a business. That means you need to lay the groundwork for your investment to make money and operate as profitably as possible. First, evaluate how much money you put into building the property. It is important to note that residential properties are handled slightly differently than commercial properties. Think about the cost of upkeep, including managing any shared facilities in your building.
3. Safety and condition of the building
As a landlord, maintaining a safe environment for your clients rests on your shoulders. That is especially true for the period before you start renting out your property. You must have your property inspected by qualified persons and have them check for any potential hazards that could harm a resident. If your building is old, have it evaluated and determine whether you need to do any renovations to meet current market needs. You should also check all fixtures and replace any broken ones.
4. Building a tenant profile
All landlords must know what kind of tenants they want in their homes first; that sets the pace for marketing by clarifying the individuals the campaign will target. More importantly, it helps the landlord ensure that all tenants will have a smooth home experience. For instance, if a residential property is designed for families, the landlord might want to ensure they attract tenants with families instead of young students.
5. Legal obligations
As with many similar agreements, a landlord and tenant’s relationship is a legal contract. This legal contract comes with both rights and obligations for both parties. Landlords must appraise their responsibilities to the tenants to avoid breaking any laws. For instance, fair housing rules in different countries prohibit landlords from discriminating against tenants based on characteristics like race and gender. Landlords must also pay taxes from their money by renting out houses. Failure to follow any of these rules could lead to lawsuits.
6. Streamlining of rental processes
Finally, you need to set up systems to conduct your business smoothly. For example, you need to have a standard payment system for all your tenants to use. They can pay their rent, utility bills, and service charges through this payment. If certain services are outsourced to a third-party company, you must decide how to pay them. You can also create a system through which your tenants can register complaints and have someone address their needs.
The thought of becoming a landlord and renting your property can be scary. While it does come with a lot of work and responsibility, it is also a significant investment and an income source. Make sure you cover all these tasks before you get your first tenants.
