Are you contemplating purchasing your first rental property? Being a landlord can be a difficult experience. There are numerous things to keep track of, and one mistake can cost you.
In our most recent article, we’ve put together a checklist for the process of buying a rental property, the process of screening your renters, and a list about the best way to manage once you officially become a landlord!
Own Your First Rental in San Antonio: A Checklist
When You’re Ready To Buy
- Have Your Finances In Order – You should know your credit score and tend to the negative marks before you apply for financing. You do not want to learn after locating your dream home that you are not able to afford it.
- Set Your Limits – What can you really afford to invest? Do not compromise here. Struggling to make your mortgage payments will take the pleasure out of owning a house.
- Research – Speak with investors, read as much as you can, examine your market’s trends, and consider buying a course. The best investors never quit learning.
- Take Notes – Take detailed notes of every property you visit. Many people will use a chart to compare bedrooms, bathrooms, cost and other variable attributes of a home.
- Hire Professionals to Help – A first-time investor shouldn’t ever navigate the process alone. Enlist the assistance of professionals to help you along the way.
- Buy Below Market Value – To help ensure a return on the home, you should make an effort and only purchase properties that are listed under market value. If you are not able to get the lease payments you are after, at least you are going to have the ability to sell the house for more than what you paid for it.
- Calculate a Property’s ROI – to compute ROI, the net profit of your investment is divided by the amount of money you have invested. The results are expressed as a percent or ratio.
When You Are Screening Tenants:
- Advertise – Use the most well-known sites, and make certain you have excellent photography and accurate property descriptions.
- Provide Application Forms – Hopefully, you’ll get tenants who wish to apply on the spot. Make it easy for them by having applications available.
- Background Check – Running a background check on potential tenants is crucial. There are several services that can help with this.
- Credit Check – In addition, running a credit check will help ensure that your tenant will have the ability to pay you!
- References – Thoroughly check all references supplied.
- Sign an Agreement – The agreement, or lease, should be very comprehensive and leave no room for disagreements. Include your procedure for conflict resolution.
- Conduct an Inspection – Both you and the tenant should inspect the home (together if at all possible).
- Clean & Repair the Property – Any repairs noticed during the inspection ought to be made before the tenant moves into the home.
- Change Locks – To reduce your liability and keep everybody secure, you should change the locks with every new tenant.
- Final Steps – Collect deposits, rent, and supply keys.
After Your Tenants Have Moved In:
- Tenant File – Create a tenant file with all the applicable information. Keep tabs on all tenant issues.
- Calendar – Keep tabs on important dates, rental terms, maintenance schedule. If you own many properties, property management software will help keep you organized.
- Stay on Top of Things – Keep the house in great shape and exercise a proper maintenance program.
- Master Vendor List – You will inevitably need to pay repair costs and maintenance fees. Use vendors you trust for maintenance, plumbing, AC repair, etc. Keep their contact info easily available.