10 Helpful Landlord Tips to Keep Top of Mind

When life happens to your tenants, like a job loss, divorce, sudden relocation, or even death, leaving them unable to pay rent, it’s important to have a backup plan. That’s where rent default insurance, like Steady, comes in handy. 

Rent default insurance compensates you when a tenant defaults on their rent payment (for up to 6 months) so that you still receive an income. It gives landlords peace of mind knowing that when the unexpected happens, their rental income is safe. 

Trying to enforce rules later without a legal document to fall back on can be difficult. That’s why including clear policies on the lease agreement and guiding tenants through before move-in helps set the tone and expectations from the beginning. Some policies you might detail on your lease agreement include:

• Due dates
• Late fees
• Repair turnaround
• Noise ordinances
• Interior changes

3. Be Educated on Landlord Laws

Like any business, there are specific laws that come with being a landlord that you have to abide by. Security deposit refunds, rent increases, privacy rights, and other laws vary by state, county, and city. Being educated on these laws will help you to ensure your rights, the rights of your tenants, and avoid sticky legal lawsuits. 

The following are helpful resources to keep you and your tenant educated:

• Rental laws by state 
• US Dept. of Housing and Urban Development (HUD) Tenant Rights
• Fair Housing Act

Making your property appealing to renters is important, but will putting in marble countertops and new light fixtures increase rental income? Consider these 5 renovation ideas that go the furthest toward increasing your rates:

1. Paint
2. Flooring
3. Stainless steel appliances 
4. Granite countertops
5. New bathroom vanities

Most landlords know the importance of screening tenants. But to what degree should tenants be screened to ensure they are actually qualified enough and trustworthy to make their rental payments each month? 

Here are some crucial areas to take a deep dive into during the tenant screening process:

• Employment - A good rule of thumb is to select someone that makes 2.5-3 times the rent payment in case circumstances in life change. 
• Credit - Make note that renting to someone with a credit score below 649 is statistically riskier. 
• Residential - Reach out to at least two former landlords. What is the eviction history? Did they care for the property? Were payments made on time?
• Criminal - Requiring a criminal background keeps you safe and also discourages bad renters who might have something to hide. 

Landlords have a variety of responsibilities, from addressing maintenance issues and collecting rent to finding new tenants for unoccupied properties. For some landlords, it may be difficult keeping all the different tasks organized and maintaining a streamlined process. This is where landlord software can lend a hand. 

These tools can provide you with a way to adequately maintain properties, collect rent, and manage paperwork all from one place; and there are a variety of options out there to choose from. Plus, most landlord software includes an online payment option which is preferred by 61% of millennials and 42% of seniors, according to Money.com.

Quarterly walk-throughs are a great way to make sure that your tenant is abiding by the terms of your lease agreement and assessing any damage or minor maintenance issues before they become larger (and more expensive). In the lease agreement, schedule the quarterly walk-throughs out and detail what you’ll be looking for. Make sure to also follow up with an email confirmation a few days before the walk-through and even leave a note on the door.

Regular maintenance in these 4 areas can help reduce the chances of a major problem later on:

1. Pest control
2. Gutter cleaning
3. HVAC service
4. Pumping checks

No pet policies are common for rental properties. Make yourself stand out as a landlord by welcoming our four-legged friends. Most likely, you’ll be pleasantly surprised that allowing pets gives you a competitive edge in the market. 

Worried about the possibility of damage? Include a pet deposit fee before move-in that can be used to cover any repairs needed (such as carpet replacement or paint). Additionally, you can charge a monthly fee (generally from $50- $100) for having a pet, which is a great way to generate more income. 

One of the leading landlord complaints, and reasons tenants choose to move out, is slow response time to repairs. But that’s not all - slow response to any inquiry can lead to tenant turnover, which is why you should consider taking the following steps to ensure communication guidelines are clear:

• Identify a max response time on the lease. (For example, “landlord agrees to respond within 24 hours of any inquiry”)
• Set regular office hours where you will be available.
• Utilize tenant portals where renters can submit messages directly.

Most successful landlords will tell you that having a reserve fund is non-negotiable. That’s because from major events to small repairs, maintaining a property takes can be expensive. Having extra funds set aside just for your rental property ensures that you can cover things like an unexpected repair without breaking the bank. 

According to Zillow, the general rule is to save 1% of the property value per year. So if your property is valued at $180,000 you need to save $1,800 per year or $150 per month.

If your goal is to build a long-lasting business, these landlord tips will help pave the way. Unfortunately, no matter how proactive you are, life happens. That’s why securing your business with rent default insurance, like Steady, is so important. 

Rent default insurance ensures that if your tenant finds themselves in a position where they are unable to pay rent, you still receive the income they owed you. You can easily customize your coverage, insuring one to a thousand properties for 1.5 to 6 months of lost rent per year. 

Risk comes with owning any business, but Steady reduces that risk. No matter the economic condition, type of tenant, or unexpected event, your monthly rent income is guaranteed thanks to Steady.