If you want to be a landlord, you need to make sure your property is up to the challenge. This means making repairs and improvements as required by local law, as well as creating an appealing dwelling for potential renters or tenants. The process can require multiple steps, which may be unfamiliar to those who don’t have previous experience in operating as a landlord. To help you navigate the process, review the following key steps to get you started on the path to turning your property into a source of regular income.
Review Local Landlord Laws and Regulations
Your first step to becoming a landlord is to review associated laws and regulations regarding the condition of the property. Requirements vary dramatically between locations, so it is critical that you do the necessary research.
In regards to the property, you need to identify any standards relating to the condition of the dwelling and any required features or amenities. The condition of the space must be suitable for the intended purpose. For example, a home or apartment will likely need certain basic appliances to be in working order, as well as plumbing fixtures. Heating and cooling options may also be dictated by local authorities. If your property falls short in these areas, improvements are required before you can secure a tenant.
Consider Your Desired Rental Price
The price you are able to charge is directly related to the properties size, features, and condition. If you want to command a higher price, you need to make sure the property is improved to the proper level to make renting it at the desired rate a possibility.
For example, high-end rentals will need well-appointed kitchens with updated appliances. You may need to upgrade materials in use, such as flooring and countertops. If the walls have not been recently painted, then painting may help give the property a fresher appearance. For single-family homes, landscaping may also be a consideration.
Determine what improvements you would like to make to raise the value of the property, and use those as a guide for the next step.
Once you know what work needs to be done, it is time to look for professionals who can perform the work. Often, this means obtaining bids from suitable contractors who can complete the desired projects in your ideal time frame. Review all of the improvements you would like to make, and obtain bids from multiple contractors. That way, you can compare the prices and services more effectively before making a final decision.
Make sure all bids are obtained in writing and that they spell out precisely what work is and is not included. If the bid does not explicitly state a service is provided, it may not have been included in the provided price.
If you don’t have the funds available in cash, now is the time to look into financing options. You can explore options ranging from bridging loans, second mortgages, and personal loans. Check out the latest broker rates to see what may be available to you before applying.
Complete the Work and Find a Tenant
Once you have the funds, you can schedule a contractor to complete the work. Depending on the renovations required, the project may range from a few days to a few months. However, once everything is complete, you will be ready to find a suitable tenant. Then you can enjoy your new position as a landlord.