Are you new to the world of real estate investing in Montgomery, AL? It can be a profitable venture, but it can also drain your resources if you're not careful.
All it takes is one bad tenant to throw your entire operation off. There's also the matter of pricing your property. Most use strategies such as rental analysis to decide on a fair rent.
These are only a few tricks to becoming a successful landlord. Continue reading to learn more.
Understand Montgomery, AL Laws
Every state has its own set of laws that landlords have to adhere to. That includes Montogomery.
Before renting out your property, you may have to fill out specific paperwork or get a permit. Failing to go through the proper channels could result in fines and maybe even jail time.
Treat It Like a Business
It doesn't matter if you're a full-time or part-time landlord. You should treat your rental property like it's your business.
That means performing regular inspections, maintaining the property, screening tenants, and negotiating rental agreements. It can be a lot for one person to handle on their own. That's why many landlords reach out to a property management company for help.
Perform a Rental Analysis
A rental analysis will give you insight into how your property is doing. You can use the data you gather to figure out a fair price to charge your tenants.
At the end of the year, your rental analysis will also let you know if you should increase your tenant's rent.
To perform your analysis, you'll first evaluate the neighborhood. Have any new attractions gone up recently? That could warrant an increase in your rental prices.
Next, take a look at properties in Montgomery that are similar to yours and find out what they're going for. This will help you better price yours.
Lastly, take all this data and compare it to how much it costs to maintain your rental property.
Maintain Your Property
Again, being a landlord is hard work. You have to schedule yearly inspections of your property to make sure everything is still in working order and maintain your property.
You won't attract many people renting for the first time if the carpets are torn, and the kitchen cabinets are falling off the hinges.
Never sit on maintenance requests. A tenant shouldn't have to wait a month for you to change a light bulb. If you do keep them waiting too long, it's likely that they won't renew their lease, and they'll tell all their friends to stay away.
Tenant Screening Is Important
Before handing tenants the keys to your rental property, always perform a thorough background check.
Look at a potential tenant's credit score and ask about their employment status. If you don't, you may end up with residents who don't pay their rent on time or at all.
Maximize Your Profits as a First-Time Landlord
Maximizing your profits as a first-time landlord isn't easy. You'll need to perform a rental analysis to price your property, keep your rental maintained, screen tenants, and more.
Let PMI River Region take care of some of the work. Go here to learn more about our services and get in touch.