If you’re thinking about becoming a landlord for the first time, you may have some questions.
You should have some questions. This is not as easy as finding a tenant and collecting rent.
Owning even one rental home is a lot of work, and before you begin leasing, managing, and maintaining both a property and a tenant, you need to gather the support and the resources that will be so effective in helping you succeed.
Being a landlord requires knowledge, skills, and talents that you may not have considered. There’s a lot of detail involved, a lot of legal and regulatory hurdles, and a customer service mindset that keeps you focused on your tenant as well as your property. You want to provide a great rental experience. You want to earn as much money as you can.
We’ve been managing rental homes in Killeen and the surrounding areas for years, and we have some expert tips that should help you as a first-time landlord. Let’s navigate the rental scene together and take a look at what you need to know and where you are most likely to make a mistake.
Treat Your Killeen Rental Property Like a Business
It’s easy to get emotional about real estate. These are homes we’re talking about, after all. And, maybe you lived in this property that you’re now renting out to strangers. Maybe you inherited it from a family member and you have memories attached to it.
All of that is lovely, but when it’s time to rent out the property, you have to take off the emotional lens and approach this property with a business mindset. Because when you rent out a property, you’re essentially running a small business.
Renting out a home is good for you as the landlord because you have the opportunity to earn monthly income. But, you’re also providing a property that someone else will turn into a home. Tenants are your customers, and you have to approach the landlord/tenant relationship with a customer service mindset.
A good tip is this: surround yourself with professionals. There will always be people who can help, and they’re not going to have the emotional connection that you do to an investment. Remember that this property is an investment that now has a single purpose: to earn money. Treat it like a business.
If you want to earn money on this investment, make sure your decisions are made based on data, facts, and the recommendations of local property management experts.
Is Your Property Rent-Ready?
Before you list and market your home for rent, you want to make sure it’s ready for an immediate move-in. The marketing photos need to show off your best features, and you won’t get a great response if there is still work to be done in preparing your property for the rental market.
Your best prospective residents are looking for clean, well-maintained homes in good neighborhoods. If you lived in the property yourself before deciding to rent it out, make sure you clean out all of your personal belongings. You don’t want to leave anything behind. Your tenants won’t want that toaster on the counter or that sofa in the den. They want to move into a clean, empty space with their own belongings.
It’s also important to complete all repairs before you rent out your home. Conduct an inspection before you list your rental home. Be detailed. That creaky door should be oiled and the window screen with a tear should be replaced. Change the air filters and check the light bulbs. Test every outlet.
Once you know everything functions the way it should, have the home professionally cleaned. Every surface needs to shine. Invest in good cleaning and in good landscaping so you can create the kind of curb appeal that’s necessary.
Insurance Issues
Before you become a landlord, make sure you have the right insurance policy in place. This is something that’s easy to overlook, but you want to have the right coverage in case there’s a claim or a loss. When you’re renting out a home that you once lived in, you’ll want to convert your homeowner’s insurance policy to a landlord policy.
If you don’t have the right coverage, a potential claim may be denied. We also recommend that you require renter’s insurance of your tenants. This is important because while your policy will cover your structure, your liability, any loss of rent, and things belonging to you, such as appliances, your policy will not cover a tenant’s personal belongings. Most tenants today are moving in with expensive electronics, nice clothes, and prized possessions. Help your tenants protect those things with an affordable renter’s insurance policy.
Understand What You’ll Earn and Spend
Pricing a rental property when you’re a new landlord can feel a bit like a guessing game.
But, it shouldn’t be. The right price makes a big difference in what you earn now and in the future. You may not know it, but there are nuances and trends from neighborhood to neighborhood in Killeen, and there are also competing properties to consider and the general strength of the market. Study local rental values, maintenance expenses, and vacancy rates. This will help you budget and plan.
We recommend that you consult a Killeen property management expert before you price your property. While you can check rental sites for a range of rental prices, your management partner will have specific data that speaks to your neighborhood, your property condition, and the state of the rental market. You’ll get a data-driven idea about what rental values are in the area, and you can project what you’ll earn before you put your property on the market.
Anticipating expenses is another part of being a landlord. Estimate what you’re likely to lose in vacancy and what you’ll have to spend on routine maintenance and ongoing upgrades and improvements. Have an emergency reserve tucked away in case you need a new roof or the air conditioning goes out in the middle of a hot Texas summer.
Screening Killeen Tenants Effectively
Unless you’re working with a property manager or using an online screening system, you’ll have to conduct your own tenant screening.
This can be tricky, especially when you’re new to screening. Even experienced landlords will hand the screening process over to Killeen property manager or a third-party screening service. This can be a precarious undertaking, especially if you don’t understand the fair housing laws around screening. You also need to know what makes a good tenant.
You’re not choosing tenants just because you like them. You need a documented set of rental criteria and a system for screening that ensures every applicant is treated the same and measured against consistent standards.
Tenant screening is one of the most important things that a landlord can do. The type of tenant you place in your property will have a huge impact on the rental experience you have. With a good tenant:
- Rent will be paid on time
- Your home will be well-maintained
- The lease terms will be followed
- You won’t find much wear and tear when the tenants move out.
Bad tenants are a risk, and that’s why tenant screening is so important. Make sure you know how to identify red flags in a screening report.
Screen tenants carefully while complying with all fair housing laws. If you’re not sure you have the resources or the knowledge to do this correctly, get some support from a local property manager (like us!).
Killeen Property Management vs. Self-Management
Usually, self-managing landlords who set out to lease, manage, and maintain their rental property on their own quickly realize that there’s a lot more involved than they initially thought. Dealing with tenants and protecting the condition of your property takes up a lot of time. If you have a full-time job already or family responsibilities or other passions that you’d like to pursue, managing your own property is going to feel like a second job.
Killeen property management can help in a myriad of ways.
Many landlords and rental property owners choose to work with professional property managers because it saves time and money. But even more important than the time and the money is the experience and the expertise you can access when you partner with a management company.
We invite you to leverage our experience, resources, and relationships. The technology we provide is far more involved than anything an independent landlord could access on their own. You’re handing your valuable investment property over to a team of experienced professionals who have been leasing, managing, and maintaining investment properties for years.
We’d love to help you become a successful landlord for the first time. Let’s talk about where you are, what you’re hoping to accomplish, and how we can help you have a fantastic experience renting out a home. Contact us at Shine Residential Management.
A property management company based in Harker Heights, Shine Residential Management cares for exceptional single-family homes throughout Central Texas, including in Killeen, Temple, Belton, Copperas Cove, Salado, and Georgetown.
