Owning rental properties you purchased with different types of home loans can be a great investment strategy. However, where many people go wrong is not taking the time to consider exactly what is needed to be a great landlord to keep tenants renewing their leases year after year.
- Maintain the properties in decent condition. Treat the rental home like your own and make sure the yard gets mowed, siding gets power washed, and other maintenance gets done on a regular basis.
- Communicate with your tenants. Let your tenants know when you or a contractor needs access to the inside of the home for maintenance, like to change furnace filters. Even though you own the property, you cannot just let yourself in whenever you want.
- Screen new tenants and do reference checks. Anytime you are looking for a new tenant, it is acceptable to check their credit, ask for rental references, and even run a background check.
- Put everything down in writing, even for friends and family. Oral agreements are never a good idea and could create more headaches for you should something go wrong. It is better to have written lease agreements to protect both you and your tenants.
- Brush up on lease/rental laws in your state. You should have a general understanding of the laws in your area, as they describe rights that cover both you and your tenants.
If you are considering refinancing rental properties or are looking to purchase more, remember to call Elite Financial at (800) 908-LEND or (805) 494-9930 today for assistance in finding the best mortgage programs!