AllRisk Auto Insurance, LLC Blog
One of the most important things that you should master as a real estate investor is how to find good, qualified tenants for your properties. If you do not choose your tenants carefully, you will certainly get frustrated by the cash flow from a renter who is always late when it comes to paying the bills or perhaps one who does not pay anything at all and who even vandalizes the place. Here are five tips that can help you protect yourself from the worst renters.
Have a Perfect Renter Profile and Do Background Checks
Before you agree on renting your property, the first thing you have to do is to come up with a profile of what you think is the best renter. What does he do for a living? Is he single or married? What would be his hobbies and interests? Once you are done with this ideal profile, advertise your place. When someone contacts you, perform a thorough background check. Use Tenant Background Search if you want and check if there is an eviction or criminal report on the person.
Get a Real Estate Attorney and the Legal Documents
Your real estate attorney will be the one to procure all the necessary legal documents for a particular tenant. Don’t try to be cheap by downloading fancy rental agreements from the Internet. Your renter will take advantage of the loopholes in these agreements. Prepare yourself for any legal action that you may have to take against this particular renter. Thus, it is always better to have your attorney prepare the agreement in the first place.
Be Frank and Honest With Your Renters
Before they rent, you have to be upfront with your renters. For example, if the electricity bill becomes expensive in the summer months, then you should tell them beforehand, especially if the cause is windows that are not particularly airtight. Present the high monthly upkeep or some other factors like external noise from a nearby factory. Be honest about everything in order to avoid complaints.
Make Sure the Monthly Rent Includes Routine Maintenance
Tenants who never cut the grass are the main reason for this. Thus, preserve the value of the house by maintaining its appeal. Explain this to the renter beforehand. Moreover, you can include trash removal service. This is to maintain the value of the house and to make sure that someone does the job properly.
Some Final Words
Being a landlord is not easy, but it is not hard either as long as you are fair, honest, and firm. Be a good landlord, and trust that word of mouth will make you popular. Lastly, you can also try to ask renters if they can carry their own insurance policies. However, if something unfortunate happens and the renter’s insurance does not cover much, then you should have renter’s insurance yourself.
At AllRisk Auto Insurance, LLC, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (360) 693-4044. Get your free quote today by CLICKING HERE.