Page 9 - urbanx

THE KEY TO BEING A LANDLORD

Once you've found a

great tenant, act fast
to get the lease

signed. From there,
never forget that

you're running a
business and your

tenant is a customer.
Treat your customer

right and success is

more likely to come
your way.

Thinking of becoming a landlord? common areas: water, door locks, payments per year).
While this can be financially and and flooring. When it comes to finding a tenant, don't
personally rewarding, you must do Don't make the rookie mistake of be too relaxed. Interview prospective
your homework before you take the underestimating the costs of fixing tenants on the phone first to find out if
leap. To help you learn the ropes and and maintaining the property, both they meet your requirements. Then it's
avoid any costly missteps, here are before and after a tenant has moved important to check your potential
some handy tips of the trade. in. tenants credit and speak to their
It cannot be overstated how important Most landlords account for references. Confirm the source and
it is for landlords to do their pre- insurance and taxes, but it's easy to amount of their income. It should be at

closing homework. miss expenses like garbage, least 2.5 times the annual rent. You
During home inspection, remember to gardening and regular maintenance. should also learn what is legal in your
take a thorough look at the property to According to money, you should set town.
see what will need to be repaired or aside at least 35 to 45% of your
replaced. For example, you might annual rent income to cover these
want to change toilets to low-flow costs. (And when you're calculating
models. You'll probably want to invest this income, it's a good rule of thumb
in essential upgrades to three to account for only 10 or 11months