5 Tips for Managing Your First Rental Property

You have just purchased your first rental property or are close to buying. Do you know all the things you need to think about before you get your first tenant to move in? Here are some tips to get you started.

Follow the Laws

Make sure you know all the federal and state laws regarding rental property and be prepared to follow them. You might need to make renovations to the building to bring it up to code, too.

Think About Property Management

You will need to decide whether you will manage your rental property yourself or hire a real estate company Chattanooga TN to manage it for you. A property management company can take care of finding tenants, collecting rents, making repairs and doing maintenance tasks such as lawn care. 

Decide on a Rental Price

Research rents in your area in order to come up with a good rental price. Consider such things as the number of bedrooms and bathrooms, the condition of the apartment, whether pets are allowed and the location when comparing rents. You also need to make sure that the rent will be enough to cover your mortgage, taxes and expenses.

Find and Screen Tenants

An easy way to find tenants is by advertising online. There are various sites such as Craigslist, Zillow and Apartments.com where you can list your place. Be ready with criteria that you will use to screen your tenants. You should prepare a tenant application with pertinent questions about such things as employment, references, family, pets and so on. You should do a credit check and a criminal background check, as well.

Have a Written Rental Agreement

It is crucial to have a written rental agreement with everything spelled out. This will save problems in the future. Look at sample rental agreements online to make sure you have covered everything.

Becoming a landlord may seem scary at first, but you will soon learn the ropes. Follow these tips to help you stay out of trouble.