How to Become a Landlord
Becoming a landlord is something that people often think of as a way to make money. It seems like a pretty easy job and easy way to make a profit. People think that all you have to do is find a quality property and put a sign out front. While being a landlord is a great way to earn money, it is not without requirements; it is a job just like any other. It has requirements and considerations. To decide if you want to be a landlord, you should look through this checklist and evaluate whether it seems like a thing you would like to do.
Find the Right Property
Finding the right property is the first step in the landlord’s checklist. This property should be located in a good spot for renters. A common refrain in real estate is that the three most important aspects of a piece of property are location, location, and location. First, you have to find somewhere that you think people will want to rent. University towns are a great choice for rental properties, because students will spend only two or three years living in a place before moving. They’ll be likely to rent property instead of buying.
You also need to make sure that the property is in good condition. If you already own the property, you can skip to the next step. However, if you don’t own the property, you have to go through all the different aspects of buying a home; it has to be inspected by professionals and then taken through all the appropriate legal steps. Once you’ve done that, you need to perform inspections specific to landlords.
Health and Safety Checks
As a landlord, you have certain requirements for your home before you are legally allowed to rent it to tenants. You have to perform health and safety checks to ensure that the electrical and gas systems are safe. You also have to install carbon monoxide detectors. You must perform a test for Legionnaires’ disease risk. These are legal requirements that you will have to contract an inspector to perform.
It is also a good idea to have an electrician perform a portable appliance test. It’s not legally required, but it will help set you apart from other landlords.
You must also perform fire checks to reduce the home’s risk of fire. You must install smoke detectors on every floor of the home. In certain properties, it is mandatory to install fire extinguishers, fire blankets, and fire doors. In properties where these are not mandated, it’s still a good idea to include them. They will help keep your tenants safe as well as keeping the home safe from fire damage.
You must be accredited as a landlord with your local community. This ensures that you are performing a legal operation pursuant to all relevant laws. This is not the end of your duties as a landlord, but once you perform these steps, you will be a legal landlord.
You need to also work towards being a great landlord by providing quality services for your tenants.