It’s very lucrative to own and rent out property. But, in order to continue the cash flow, you must keep your property well-maintained. Tenants are the backbone of the success in continuously renting your property, so you want to make sure that you schedule regular maintenance.
Before you rent out your property for the first time, have money set aside for: new appliances, making sure there are no electrical or plumbing issues, maintaining the outside of the property, and either hiring painters to apply a fresh coat of paint in every room or purchasing the supplies to do it yourself. This can cost a few hundreds or even thousands of dollars based on the original condition of the property. Once you’re certain that your rental property is in top-notch condition, you’re ready to get your first tenant(s). While you have tenants living in your rental home, you want to make sure that you budget for any repairs that may arise during the tenants’ lease term. Assuming the lease term is the standard 12 months, you should set aside about 1.5 times the monthly rent for the upkeep of the property. For example, if you are charging $1,000 per month for 12 months, you should have $1,500 annually for repairs; this calculates to $125 per month. Keep in mind that this is only an estimate and can vary greatly depending on the repairs needed.
Rules and Regulations
Maintenance is only one part of a rental property; you also have to be aware of the rules and regulations that come with renting the property. If you own rental properties in Athens, OH, you can easily research the legal side of renting property by going to the state or city website. As a landlord, you must familiarize yourself with building codes and any laws that pertain to you. Or, hire a real estate lawyer that will handle the legalities for you. Additionally, always have a rental or lease agreement in place for all tenants; be sure to list all the tenants’ responsibilities while living on the property and what you’re responsible for. Make sure you keep all communication with your tenants open and always respond to requests quickly; remember, a happy tenant is a good tenant.