What is the process of becoming a landlord?

There is more to it than just buying properties then collecting rent.

Here are the usual stages a landlord goes through:

 true-property-what-is-the-process-of-becoming-a-landlord

Inspiration

You have the idea to invest in property.

Perhaps a family member has encouraged you, or friends are doing it well.

Whatever the reason, the seed has been planted and you have the inspiration to follow-up on this idea.

Research

Researching takes time but it’s important.

Research all the areas that you think you’d like to invest in.

What type of property do you want to invest in?

What team members do you need to hire? (Property Manager, Accountant, Legal representative)

Financing

How are you going to pay for it?

Who in your team can help you make decisions?

Some finance issues may come under the research section, but for others, it can be a separate category.

Paperwork

Decide how you are going to purchase your property. What type of insurance will you need?

What type of insurance will you need?

What contracts will you need?

Don’t skip this step!

We know paperwork isn’t exciting, but you need to know all of the legal issues and have everything in place BEFORE you start looking for a property.

Search and Purchase

You’ve got the money.

You’ve done the research.

All of the legal issues are ironed out.

Now it’s now time to find your dream rental property.

You’ve got an excellent team who know how to get a good deal.

 

Renovate it

Put your stamp on the property – add value if you can.

Get advice from your contractors.

If you don’t have contractors, find them!

Your ideal tenant needs to fall in love with it.

A great contractor will save you money in the long-run on these points.

Are you using a Property Manager for your property?

If so, I would advise that you get them involved in this step – BEFORE you start to renovate.

A Property Manager will be able to give you great advice on what you should and shouldn’t do to maximise your rental yield.

Promote

If you haven’t hired a Property Manager, you’ll need to handle the marketing yourself, including taking outstanding photos.

Photos can make or break a property.

Your potential tenant’s first impression is likely to be the pictures they see online – so make them appealing.

Then you need to advertise your property in all the places your ideal tenant will be looking.

When you arrange an open home, get there early and have all the paperwork you need.

Always be friendly and welcoming.

You have to make a good impression.

Screen potential tenants

This is non-negotiable.

The screening process is the key to long-term, responsible tenants.

Do everything you should do – and then some.

You will not regret it if you do the work.

But if you decide NOT to spend the time and effort at this point, and the tenant turns into a nightmare, you will kick yourself for years.

You can hand this over to a Property Manager to take care of if you don’t want to deal with this.

Sign and collect

Sign the lease, collect the bond.

Make sure you use a rock-solid contract, that spells everything out and that you go through it ALL with your tenants.

This way your new tenants cannot claim they ‘didn’t know’ they weren’t allowed to sub-lease the property.

Make sure that all adults that are living at the property are named, and they all sign the lease.

Moving Day

Deliver the keys to the tenant, and lend them a hand.

Go the extra mile, give them a ‘welcome’ gift of essentials (toilet paper, dishwashing liquid, tea towel, milk, etc.)

You’ll make a good impression, and your tenant will be grateful.

At the very least provide a contact sheet with your details, the day rubbish is collected, local takeaway places, and other local knowledge.

Collect the Rent

Once you set up an automatic payment there shouldn’t be many hassles with collecting rent, but sometimes there are teething issues, so monitor carefully.

Repair, Maintain, and Inspect

When your tenant calls with an issue, sort it out ASAP.

The sooner you get on top of a leaking tap the better it is in the long-run.

The tenant will understand that you’re responsive, and the property is valuable to you, and you expect the same in return.

Make sure you inspect the property as outlined in your lease, this way you can address issues straight away.

Renew or Re-list

Hopefully, you’ve made a great impression on your tenants, and they want to stay, so renew that lease.

If not, then start the process again at step 6 if you need to.

Do you need to do any touch ups before you re-list the property?

If you want to hand the management of property over to a Property Manager, contact True Property Management.

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