Individual investors own almost 70% of the 48.2 million rental units in the US. If you recently inherited property, competing with these investors can feel daunting. The most successful accidental landlords develop a plan before accepting tenants.
Not sure where to start as a new landlord? Read on for the five essential tips you need to ensure your success in a competitive market.
1. Invest in Marketing
Attract renters to your investment property with traditional and digital marketing strategies. Develop a multifaceted marketing plan to gain more visibility off and online. Effective marketing strategies include:
- Print ads
- Content creation
- Paid advertising
- Email marketing
- Search engine optimization
- Social media marketing
Create a stunning rental property listing to provide renters with the information they need. Your listing should include a detailed description, the rental rate, and stunning photos.
2. Understand Local Laws
To avoid legal issues, research Maryland's housing laws and regulations. Ignoring these laws could lead to lawsuits and fines.
For help, hire a property management company. Their legal assistance can help you avoid stressful situations.
3. Screen Applicants
Before accepting new renters, develop a tenant screening process. A thorough assessment includes:
- Credit score reports
- Criminal background checks
- Rental histories
- Employment verification
To save time and money, outsource this process. A property manager can help you choose renters you can trust with your property. Otherwise, renters may pay late or damage your new investment property.
4. Automate Rent Collection
Use property management software to accept rent payments online. Tenants can automate their payments.
Outline your expectations in the tenancy agreement. For example, you can offer renters a grace period when rent is due. Instead of expecting rent on the first of the month, allow them to pay until the fourth.
Use your tenant portal to automate late fees. You won't have to interact with renters in person to collect delinquent funds. Otherwise, you could experience stressful situations every month.
5. Hire a Property Manager
Only 45% of property owners manage their investments. Instead of going the DIY route as a new landlord, outsource. Hire a property management company.
Over 70% of property managers complete advertising, property inspections, and lease agreement management. Choose a full-service property management company. Their range of services will help you operate more efficiently.
Find a company that leverages the latest technology to help clients save time and money. Automation can reduce your stress load.
For example, your property manager can give your renters access to a tenant portal. Renters can pay rent and submit maintenance requests online. Using an online portal can help you avoid misunderstandings, leading to better tenant-landlord relations.
Apply These Tips for Accidental Landlords
The most successful landlords don't juggle these responsibilities alone. Instead, they outsource and rely on experienced property managers. Working with a property management company will help you thrive as a new landlord.
Need immediate help with your investment properties? PMI Maryland Solutions uses the latest technology and award-winning strategies to support clients. We can help you maximize your earning potential.
Avoid unnecessary landlord stress. Contact us today to meet your Rockville property manager.
