The first time you fixed a bug on your computer or figured out what that annoying beeping sound was in your car, maybe you felt a small sense of satisfaction at figuring it all out without calling in the experts.
If so, you'd probably thrive with a real estate approach known as for rent by owner. That's a DIY option where you take matters into your own hands as a landlord.
Here are some owner rental tips and a step-by-step guide to get this right from day one.
Get to Know the Law
When you buy a property, you don't need to know the ins and outs of the law like you would as an attorney.
However, you need some fundamental knowledge, as it can save you from making costly mistakes and facing legal fines. Familiarize yourself with state law on tenant rights and eviction processes.
Understand safety and building laws, which often provide information on property conditions expected from landlords. Ensure you are compliant in every critical area.
Learn Some Basic Marketing Tips
A few marketing tricks can be advantageous for DIY property rental management. By attracting potential tenants to your property, you're more likely to find a reliable tenant and secure a lease agreement faster.
Know how to write a compelling property listing, ensuring you include valuable information such as the neighborhood and local amenities. Invest in a photographer to take high-quality pictures of the interior, and if you have the time and funds, create a virtual tour, too.
Run a Comprehensive Screening Process
You may feel a sense of urgency to approve a tenant application. After all, the sooner they are in the property, the sooner you can start receiving monthly rent payments.
Nevertheless, always do the relevant checks for independent property leasing. Be as comprehensive.
Check databases for any evidence of a criminal background. Speak to previous landlords and ask for a reference. Check the tenant's financial situation via proof of income and credit score.
Invest in Your Property
Investing money in your property gives you a chance to increase its value in the long term. If you are short on funds, focus on urgent maintenance.
Be prompt at fixing issues for your tenants and proactive about checking the property to catch the problems before they worsen. If you have some money to spend, assess the interior and list any areas that look worn or dated.
Build a Strong Relationship With Your Tenant
A trusted relationship between you and your tenant is the starting point for a long one. If you have a tenant who pays on time and looks after your property, you want to go to great lengths to keep them.
It reduces the time and cost of remarketing your property. So keep communicating with your tenant and be responsive, friendly, and flexible.
For Rent By Owner: Is It the Right Strategy for You?
The for rent by owner strategy isn't for everyone. Some may prefer a hands-off approach. But if you opt for it, ensure you understand some of the intricacies of property management.
At Renters Warehouse, we have one of Richmond's most established and well-known real estate brands, so you'll have a dedicated team who can ensure as many prospects see your rental as possible. Discover more about our services here.
