Statistics indicate that a little over one-third of United States residents rent their homes, the highest proportion of renters to homeowners since 1965.
According to the National Multifamily Housing Council, there are currently about 111 million residents living in 43.8 million rental homes across the nation.
With so much of the population renting, rather than buying, with enough demand to back the behavioral trend for years to come, every investor should be fully informed about how to become a landlord.
While there’s no objectively-true, set-in-stone manual or guidebook to becoming a landlord, every great, understanding landlord shares several communal qualities that renters love. Here are several tips for becoming a good landlord.
A Month Or Two Late On Rent Is OK, Not Six Months
Most people have been through financial struggles in their adult lives, seeing as income inequality is at its all-time highest here in the United States, and all.
As such, most landlords will be able to understand the difficulties of paying rent on time consistently from month to month. Most every landlord will feel that being late on one to two months’ worth of rent is acceptable.
However, being too friendly can result in tenants racking up thousands of dollars in unpaid rent, leaving you in a difficult situation.
If your tenants are behind on rent for no longer than 60 days of renting, you should most likely let them slide, and let them know it’s OK, and that you’ve been there before. However, anything over three months should come hand-in-hand with an eviction notice.
Draft Leases To Match Your Specific Situation
Thanks to services like LegalZoom and Avvo, the Internet is full of already-drafted housing leases that take the pain and suffering out of the legalities of landing tenants on rental agreements.
Failing to customize rental agreements could land you in a position in which tenants have significant leverage, or vice-versa. Consult an attorney if you aren’t certain of what various terms mean, or how a lease should be structured.
Live Within A Few Minutes’ Drive To Rental Properties
If you aren’t able to check on your rental properties on a regular basis, you should sell them and find properties closer to your residence. Don’t live next door to your tenants, but always be close enough to check the condition of your properties every few months.