DD: 5 Keys To Profitable Rentals

[Cole Simpson]

Daily Dose!

5 Keys To Profitable Rentals:

1) Every Communication Counts

Keep in mind that early communications shape the tenant's perception of the landlord. It's difficult to recoup if the tenant develops reservations. The rental ad, the initial phone call or meeting, and the rental application must all set the tone for clear, effective communication that portrays the landlord as competent and in command.

2) Keep Everything in Writing

A written lease agreement is required. While verbal leases are nonetheless legally binding in many circumstances, they are much more likely to cause a disagreement. To avoid future misunderstandings, the written lease should require all further amendments to be made in writing.

3) Be Clear with the Rules

Tenants must first grasp the rules in order to follow them. Tenants must understand what they may and cannot do, as well as who is responsible for routine maintenance and repairs. These guidelines must be explained in plain English rather than legalese. Before offering a lease or house rules list to a tenant, it's a good idea to have a neutral person read them.

4) Ongoing Contact is a Must

Maintain contact with the tenant during the lease period. This should entail a few routine inspections, but it can also be a "virtual" presence, such as a monthly newsletter or even emailing or sending a rent receipt. When the landlord appears to have vanished, the tenant is more prone to break the rules.

5) Keep Records of all Interactions

Make a record of all interactions in the tenant file, including rent transactions, phone talks, and repair requests and completions. Landlords may minimize the uncertainty that all too frequently leads to an expensive tenant dispute by communicating clearly and effectively.

What else do you think?!