If you are a homeowner and you are renting out your property you’ll know about all the expenses. Sometimes these expenses are expected and other times they are an unpleasant surprise. Ways of saving money can become very important. Here’s how to save money when renting a property.
How to save your money and time while renting a property
A lot of people these days want to become a landlord. Sometimes this is out of necessity or possibly because they need a regular source of income from their investment. What’s great about being a landlord is that you have the ability to make money from your property. This you can do with little effort except the process of renting it out. The best part is that you can even find tenants to rent your property without doing much work.
The downside of being a landlord is that you have to manage all the property concerns. You need to find tenants, collect their monthly payments, deal with maintenance issues, and so on. This can be time-consuming and tedious if you aren’t familiar enough with these processes. Therefore, here are some tips on how to make your life easier while renting out your property.
Be cautious when approaching potential tenants
The first step in making your life easier when it comes to renting out a property is to choose your tenants carefully. You would find people who will pay you on time every month. However, there are a lot of people who put up a good front but then fail to pay. They may have bigger problems that will prevent them from paying rent when it’s due. Or worse they think nothing of disrupting your rental agreement. Therefore, don’t just take anyone’s word for it. Do a thorough criminal and financial background check on them before renting out to them.
Hire a professional property manager
Dealing with renting a property may just be too much work for some people. If you want to save yourself from the hassle of finding good tenants, then you should consider hiring property management Las Vegas, and let them do all the work. Even if you don’t have the time or patience to handle your rental property hire a professional property manager. There are many professionals who are keen to add properties to their portfolio. This might be the best option for you. Property managers will take care of everything from advertising, finding new tenants to collecting rent on time. What is more they will hand any maintenance issues that may arise.
Keep track of your expenses
One thing that landlords often forget about is how much money they spend on renting their property out. They think that it’s all the tenant’s responsibility to pay rent, but this is not the case. If your tenants don’t pay time, then make sure you have funds to cover the rent until they do. In other words, if your tenants can’t pay you in full for a month, make sure that you take from the rent deposit or from your own bank account so that you avoid a deficit.
Another issue is the money spent on maintenance issues for the rental properties. As a landlord, these expenses are seen as necessary costs. They should be included in the monthly rent so that your tenants can shoulder them. This will prevent you from incurring more expenses every time there’s a problem that needs fixing.
Consider charging late fees
Some landlords don’t charge their tenants’ late fees to maintain the relationship with them when they’re late on payments. This is a mistake for two reasons:
- You still end up losing money because of the missed rent period.
- If you allow your tenants to be late on a payment without any consequences then they will expect it whenever the rent is due. This is never good when you have other potential tenants waiting also. Charging a small fine whenever your tenant is late to pay is acceptable. This does happen fairly often with tenants.
When renting a property stipulate everything in the contract
When you first start renting out your property, it’s unlikely that you already know all of the ins and outs of rental laws so it will probably take some time for you to learn what to do. One mistake that landlords make is not reading up on their state’s tenant-landlord laws or not including any provisions on the rental agreement about late fees or how these fees should be applied. This is a huge mistake because if you’re caught unaware when something happens, then there’s no telling how your rental situation will turn out.
A final word on saving money when renting a property
As mentioned earlier, being a landlord is not an easy job. You have to be responsible for everything that happens to the property whether it’s the tenant messing up with your house or having money stolen from your bank account because of theft. Therefore, you need to know what you need to do so that finding tenants and renting out your property won’t have any problems along the way. At Housesitmatch.com we often share practical advice that our members might find useful. Many of our homeowners are also landlords or would be landlords. We hope this article is of use.
HANDY REFERENCES FOR HOMEOWNERS AND RENTING OUT PROPERTY
At Housesitmatch.com we like to offer useful and practical articles on topics for our readers. In this selection we offer you a number of suitable pieces from our own blog on renting, moving and preparing new home.