For centuries, owning investment real estate has been the key to unlocking regular passive income, along with increasing net worth through equity. But, while the concept of being a landlord is simple, it is far from easy.
That’s why it is important to follow some proven tips that can help you to increase your odds of success, and at the same time minimize the chances of taking on destructive or non-paying tenants who may inflict damage to your investment(s). These tips include:
- Having a strict tenant screening process.
- Using a thorough lease.
- Offering incentives for good tenants to stay.
One of the best ways that you can keep deadbeat tenants out of your property(ies) is to have a strict screening process for applicants. Although you must stay within the laws of HUD (the U.S. Department of Housing and Urban Development), a stringent process for screening applicants can help with weeding out those who have a history of non-payment and eviction. Although running a credit and background check are fairly standard, putting other tenant requirements in place can help you to avoid a problem before it ever starts.
Once an individual(s) qualifies to rent your property, make sure that the lease is also thorough in explaining what the tenant – and the landlord – may and may not do…as well as the ramifications for breaking the lease.
When you have good tenants who pay their rent on time and keep your property in good shape, it can be difficult to see them go. That’s why you could offer incentives for them to stay, such as replacing or upgrading the appliances, putting in new flooring and/or paint, and/or keeping their monthly rent at a set amount if they re-sign the lease for a stated period of time.
Another way to up your game as a residential real estate owner is to have your properties professionally managed. Doing so can also allow you to delegate a long list of tasks to a property manager, rather than doing everything yourself.
So, if you own rental property in Orlando and/or the surrounding Central Florida area and you would like more information, please feel free to contact us and we’ll be happy to provide you with additional details.