Launching Your First Rental as a New Landlord

There is a lot of investment that goes into starting a rental business, but if you do it carefully, intentionally, and intelligently, it can more than pay off. Our first time landlord checklist is designed to help make getting started as a landlord is as smooth as possible, from attracting the right tenants to handling legal and administrative challenges and everything else required to get your rental properties off the ground. It is important to set good habits and precedents if you want your investment to last.  

Let’s take a look at some of the different tasks that you should pay close attention to as a first time landlord. 

Administrative and Legal Tasks 

The initial administrative and legal tasks of starting a rental business are arguably the most important, as a lawsuit could cost you more than just money. Protect your business early on by investing in landlord insurance, learning how to thoroughly document daily operations, and becoming intimately familiar with local landlord-tenant laws on the national, state, and local levels. Prospective tenants will also appreciate a landlord who is organized and implements reliable systems. 

Property Tasks 

A first time landlord should also implement routines to ensure their property is in good condition and compliant with housing and safety codes. These tasks also ensure that you’re prepared for maintenance issues. Though they can be a headache, repairs and upkeep are a necessary part of the business, and you don’t want to be stuck without a plan if something goes wrong. Make sure you familiarize yourself with what goes into property maintenance and know who you could contact in your area to assist with various maintenance emergencies. 

Leasing Tasks 

Leasing is where you concern yourself with the specifics of your rental policies, which you’ll include in your lease agreement. How much will you charge for rent? How about the security deposit? Will you allow pets? These questions focus on how you’ll manage and do business with potential tenants, including the screening and application processes. Attracting the right tenants and enforcing effective policies goes a long way in ensuring the longevity and success of your business. For this reason, you should spend plenty of time carefully drafting the rental agreement, deciding how you’ll screen tenants, and creating a process for collecting rental income after the first month’s rent is paid at move in. 

Move-In Tasks 

Once you’ve confirmed that your property is code-compliant, instituted effective policies, and found high-quality tenants, move-in day is on the horizon. A few simple tasks can help ensure this day goes smoothly and without issue, including having the keys and lease documents in order as well as setting your tenants up with online rent collection and/or property management software.  The day a new tenant moves in is also a great opportunity to start building a strong landlord-tenant relationship by taking simple steps like checking in with the tenant, providing a small welcome gift, or reviewing lease components and rent payment processes in person. 

Next Steps 

Your rental business is up and running smoothly. What now? We recommend networking with fellow landlords in your local area or joining property management associations. Networking with other professionals in the industry is a great way to get a better understanding of smart landlord practices. Building relationships with real estate professionals also helps you build credibility and foster trust in your business. 

Familiarizing yourself with the world of real estate, especially relevant laws and housing market trends, is another important aspect of getting started. However, neither of these two topics are static. Markets fluctuate, and federal, state, and local laws affecting your rental business may be amended, replaced, or scrapped altogether. Once your rental business is operational, it’s crucial that you continue to keep track of current events in the real estate world and adjust accordingly. This usually involves tasks like instating yearly rent increases, assessing local market trends, and hiring a lawyer to look over lease agreements and keep them compliant. 

This continued vigilance applies to all aspects of your rental business. For instance, it’s essential to keep up with contemporary marketing strategies (e.g., social media) for your investment property so that you continue to be competitive with other landlords and attract the best tenants. It’s also critical to commit to regular inspections of any rental property you own so that you avoid preventable problems. 

Conclusion 

This landlord checklist for renting a house is meant to help you commit to best practices and establish a solid and thorough foundation for your business. By the time your tenants are settled and you are collecting rent payments, you should be set up for success, able to address many of the problems that might come down the line. However, it is entirely up to you to maintain that energy to not only protect your investments but also realize the full potential of what a successful rental business can be.