Congratulations! You have purchased your first property and found tenants to occupy it. Before you sit back and let the passive income roll in, however, you will need to take some important steps to establish a good working relationship with your tenants and solidify your reputation as a high-quality landlord. These tips will help you to be a great landlord.
Make Repairs Promptly
There is nothing more frustrating for a tenant than reporting an issue with the property he or she is renting to his or her landlord and failing to receive a prompt response. You should aim to respond to emails or phone calls from tenants within a day. In the event that there is a problem with the house or apartment that is your responsibility, such as a leak or broken appliance, make a plan to have the issue inspected and remedied within a week, if possible. By being prompt and helpful, you will develop a good relationship with your tenants, who will be likely to continue to rent from you in the future and even refer additional business to you.
Consider Hiring a Property Management Company
Perhaps you are not interested in being a hands-on landlord. Maybe you don’t live close to the building that you are renting out, or you are frequently “off the grid” and unable to be in frequent communication with your tenants. If so, you have the option of hiring a property management company. Property management Toronto involves the overseeing of commercial or residential real estate that is owned by another entity or individual (such as yourself). Assuming that you are taking in enough income from your rental property to justify outsourcing the management of it, a property management company will allow you to reap the financial benefits of being a landlord while eliminating a lot of the hard work.
Familiarize Yourself With the Law
In order to protect yourself, it is important that you are familiar with your state’s landlord and tenant law. You should have a thorough understanding of your obligations and rights as well as those of your tenants. The information is available online or in your local Department of Housing office. In the event that you have to deal with a difficult tenant, being informed should help you to avoid having to appear in court.
If you are well-informed of the laws governing landlord-tenant relationships in your area and are responsive to your tenants, you will be well on your way to being an effective landlord. If you don’t want to be too involved with your property or your tenants, make sure to look into property management companies in your area.