The Atlanta area grew by over 66,000 people in the past year. That's amazing growth! Many of these people are renters, making this a good time to be a landlord.
First-time landlords may not feel ready for this new journey. We're here to help! We've assembled a few tips about rental analysis, tenant screening, and more that can help you get started.
Read on to learn more.
Rental Analysis: Evaluate Carefully
Before you buy a property to rent out, you need to go through a rental analysis. Of course, if you already have the property, you can skip this step. Instead, you'll be looking at other similar properties in the area to see what a reasonable rent would be.
Rental analysis is the process of evaluating a potential rental property to determine how worthy it is as an investment. It matters because it helps real estate investors make informed decisions about whether or not a particular property is a good investment and what kind of ROI they can expect.
Even if you already have the property, a quick analysis will stop you from setting the rent too high or too low. It will save you time and it may get you more money.
Screen Tenants Well
Tenant screening is one of the most important steps to ensure you have responsible and reliable tenants. When you screen tenants, check their rental history, employment status, and credit history.
Look for red flags like a history of late rent payments or property damage. This process helps you select tenants who are more likely to pay rent on time and take good care of your property.
Note that the tenant screening process isn't perfect, so you may need to approach this on a case-by-case basis. Your screening also can't break any national or regional housing laws.
Spend Time on Your Lease Agreement
Your lease agreement should be thorough. It needs to clearly outline the terms and conditions of the rental. If it's not in the lease, it doesn't count.
Include details such as the rent amount, due date, security deposit, maintenance responsibilities, and any rules for the property. Specify pet policies, smoking restrictions, and other important details that tenants need to know.
A strong lease agreement helps prevent conflict and disputes between you and your tenants.
Keep Up With Maintenance and Repairs:
If you want to keep your tenants happy and your property in good condition, you need to keep up with maintenance and repairs.
Perform regular maintenance checks to identify problems before they turn into "real" issues. If there is a problem, make sure you address it as soon as possible, even if it seems small.
Keeping the property well-maintained helps prevent more significant and costly problems down the line and contributes to tenant happiness. A happy tenant is more likely to renew!
Good Luck With Your First Rental Property
First-time landlords have a lot on their plates, but these tips will help you get on the right track. Remember: don't skip a rental analysis, keep up with maintenance, come up with a strong lease, and screen your tenants well.
Are you a new Atlanta landlord who could use some help? PMI Atlanta Metro can help. Get started with a free rental analysis today.