Rental income property lessons can be very expensive. If you’re a rental property owner, you may already have paid the price for being ‘too nice’ or thinking a basic understanding of landlord and tenant laws will suffice. Far West Realty, experts in managing rental properties, offers helpful tips to help Prescott landlords avoid some common problems.
Don’t Neglect the Rent
Rent is your lifeline. There’s nothing wrong with being willing to work with people who may be suffering a temporary setback if they are communicating with you. But if you have to chase down rent payments, that is a sign that should not be overlooked. Don’t make excuses for your tenants. Collect your rent or begin eviction proceedings.
Screen Tenants Thoroughly
Screening tenants is vital, so don’t underestimate the validity of their credit score. Low credit scores can sometimes be explained, but a low credit score coupled with other indicators (no rental history, short time on the job, insufficient references, etc.) should never be ignored.
Fair Housing Laws
Violations of Fair Housing laws can have very, very expensive consequences. If you’re going to be in the business of rentals, it is imperative that you are knowledgeable about your rights and responsibilities as well as those of your tenants and potential tenants.
Renovations vs. Rent
Granite countertops, crown molding or custom tubs in a modest neighborhood will not produce higher rents. Rents are driven by location, amenities, and the condition and quality of your rental. Do not over-renovate. Instead, make practical upgrades based on the expected market rent for comparable properties.
Market Rental Properties Effectively
Shopping online for rental properties is common practice today. The web enables you to post virtual tours, pictures, descriptive features, a way to communicate, aerial maps and more to promote your property. This will save you an incredible amount of time answering questions.
Far West Realty wants to help your rental property endeavors to be successful and profitable. If you own rental property in Prescott, you can trust us to perform expert property management services: procuring new tenants, screening prospective tenants, collecting rents and taking adverse action if necessary. For more information about how we can help, call Far West Realty today at 928-772-9400.