5 Tips to Running a Rental Property

Owning a rental property is like owning a gold mine. This is because the property will continue to generate income as long as there is high demand for housing. However, managing rental property can be a daunting task for a landlord that lacks experience, especially when there are many units. And may be that’s why most investors opt to delegate this role to property management companies in Cincinnati. If you don’t have so many engagements, you should consider managing the rental property on your own because you will enjoy all the spoils without having to share with the managers. Below are tips that you can use to run your rental property like a pro.

  1. Charge a Fair Price

When determining your monthly rent fee, greed might push you into asking for too much. If you charge an exaggerated price, your property might remain unoccupied for too long. On the other hand, desperation can make you lower the bar by setting a low rate. Though will get many tenants, you will eventually find yourself on the loosing end for leaving money on the table. Remember, your property needs routine maintenance to remain attractive to potential tenants. Such problems can be avoided by comparing the prices of different rental properties in your location to make sure your rate is not too high or too low.

  1. Draft a Rental Lease Agreement

Before any tenant moves into your rental property, you should make sure there is a binding agreement and they sign on the dotted line. The agreement specifies what the tenant can and can’t do. In fact, you should ask every tenant to read between the lines to ensure they know what they are getting themselves into before putting pen on paper. Remember, such an agreement can be used for legal purposes as long as it bears the signature of both parties.  Drafting a rental agreement should not be a problem because there are many free templates that can be downloaded from the internet and edited.

  1. Screen All Tenants

Even if you are as broke as a church mouse, you should never allow anyone to become your tenant without screening them. This is because there are tenants who seem to be very civilized when they are looking for somewhere to stay. It’s only later that their true personality come into play after they have failed to pay rent on time for several months. Since there is no fun in evicting tenants, you should confirm whether every tenant is involved in genuine gainful employment. You should also dig into their credit report to find if they have any pending debts.

  1. Film the Condition of the Property

When a tenant is vacating your property, he should ensure that the house is still in good condition. However, that’s not always the case. Most tenants refuse to take responsibility for the damages that are done to property during their stay, and as such the landlord has to dig into his pockets to cater for such repairs. Such problems can be avoided by capturing the condition of the property on tape before occupation so that you can use it as solid evidence when the tenant is moving out.

  1. Follow the All Rules      

When managing your property, you should follow all the rules that are in the lease agreement to avoid contradicting yourself. If tenants are not supposed to keep pets within your property, you should never be lenient to any defaulter. If late payment of rent attracts a specified penalty, you should never bend the rule. Tenants will learn to respect you when you hold on your ground.