Have you recently purchased a home and it has a DSQ you are not using, you can turn it into a rental or rent the home. However, you find yourself in a dilemma of how to be a landlord. It can be a hustle to deal with someone else, making them your responsibility. From rent collection to renovations, being a landlord is hard. Although the returns outweigh the struggle.
As a new landlord, you need to be up your game and we have the perfect tips to help you through:
see also: How to Hire the right Property Manager
Make rent the priority
This is your passive income. It’s you revenue. Some landlords are not aggressive when it comes to rent collection or late charges. It’s always good to offer a helping hand to those who need it, that is, if they communicate.
However, if your tenants start missing deadlines and ignoring your calls or text, you should start eviction procedures. Otherwise, you can be months behind rent without realising it.
Have the right investor
Most times your residence is under mortgage and the bank expects its share after a while. Being partners with a lender who values and understands your relationship will benefit you in the long run.
In the case, your rental lacks occupancy, your lender will consider this when collecting the interest. Having a bad relationship with the lender will lead to you having a bad relationship with your tenants. When the lender pressures you to deliver, you pour out the pressure to the tenants.
Screen tenants properly
Some landlords only admit married couples while others offer residence to students. Each landlord has a preference. As an owner, you have the flexibility to choose which kind of tenants will live in your premises.
If you live in the compound and you value your silence, young adults are not the best choice. In addition, if you want your space to her a temporary tenant go for students or someone who has a temporary job.
While interviewing a potential have a red flag list, when they mention something you won’t appreciate tick them off the list. Be cautious as some people can be criminals or won’t pay the rent.
We have heard cases of tenant evacuating during dead of night without having paid a single rent.
Know the housing laws
For some unknown reasons, landlords hardly educate themselves about tenancy laws. As a landlord you could be violating rights which have serious implications. There is no excuse not knowing the law as a landlord.
Your tenants deserve their rights.
Collect your rent online/bank
This helps you save your revenue. Or it can be used to directly pay off your mortgage.
Have cash at hand will lure you to spend it as soon as you receive it, this defeats the purpose of have the money. Additionally, this process is easier than any other means. Especially, with M-Pesa, you don’t have to worry about depositing for yourself.
Invest in the right renovations
Most Kenyans appreciate a good tiled house or en-suite. This can encourage you raise the rent because you are offering something others aren’t. However, don’t go overboard with the rent.
Renovations should produce higher rent, don’t go for unnecessary details. Things like tiled floors, hot shower, kitchen cabinets or a storage room, this will sell the home.
Market your rental properties efficiently
It’s incredible how house brokers still pin up ads on trees or newspaper. The world has shifted to an internet craze.
Using an online platform like Kenya Homes to market your listing is great because tenants can view pictures of inside the property and get valuable information about the property without bothering you.
This saves you an incredible amount of time.