When stepping into the landlord role for the first time, your to-do list can sometimes feel overwhelming. First-time landlords are suddenly responsible for the upkeep of a rental property, finding and keeping good tenants, and making their investment profitable.

Although it can be a challenging job, there are some things you can do to start off on the right track. Our Henderson and Las Vegas property management experts share these first-time landlord tips for long-term success.

1. Know That Your Rental Property Is a Business

The first thing first-time landlords need to understand when using a rental property for income is that it is a business. It is important to approach it with professionalism and the same attention to detail you would any small business you own. This includes setting attainable goals and putting together a business plan that will help you stay on track to achieve those goals.

Some other things first-time landlords should keep in mind as you get started include:

• Research and comply with all local, state, and federal laws.
• Keep your finances up-to-date and organized.
• Estimate expenses and what you need to break even.

2. Prioritize Safety Before Renting to Tenants

Before you even think about renting to tenants, you should conduct a thorough inspection of the rental property and ensure everything is safe and up to code. Getting ahead of any issues or hazardous situations can save you a lot of time, money, and potential legal trouble if your tenants are hurt. You will also want to check that smoke detectors and all utilities are hooked up and working properly.

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3. Research the Fair Market Price Before Renting

It is also crucial to your success to not price yourself out of the market or undervalue your investment by setting rent prices too low. This is a common mistake that first-time landlords often make. For Henderson and Las Vegas landlords, you need to research your area’s fair market rent price to know what renters in Las Vegas and Henderson are willing (and able) to pay for similar properties.

Knowing the fair market price will help you stay competitive while getting as much as you can for your rental. You will also avoid having long vacancy periods and will attract the most qualified tenants for your rental when your rent price is right. Staying on top of annual changes can determine how much you should adjust your rent as well.

4. Create a Process for Screening Tenants

Screening rental applicants is one of the most important things you can do as a landlord. Although it might seem like a lot of work and a time-consuming process upfront, it can save you the headache of major problems in the future. When tenants are not properly vetted, you run the risk of renting to:

• People who cannot afford the rent with their income.
• Someone with a poor credit score.
• Someone with a criminal record.
• Renters with a history of eviction or other issues.
• People who are disruptive and disrespectful to other tenants.

A solid screening process means you will have all your bases covered by checking the essential elements that make a renter a good or bad tenant. You can then weigh your options and choose the best applicant based on those qualifications. First-time landlords should be prepared to get used to this screening process as it will be an essential part of their ongoing duties as a landlord.

5. Make It Easy for Tenants to Pay Rent

Although finding quality tenants is an important factor in ensuring rent is paid on time every month, you should also focus on giving your tenants an easy way to pay their rent. Allowing online payments provides a convenient way to pay rent instantly and right from their home or on the go from their phone. You should also consider a feature that lets your tenants set up auto payments that deposit the rent money directly into your account.

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6. Purchase the Right Insurance Coverage

As a landlord, you also want to protect yourself from financial risk if something happens on your rental property or there is substantial damage from a natural disaster or other accident. At the very least, you should look into landlord insurance policies that cover property damage and provide liability protection. Some plans will also cover lost rent if the property becomes uninhabitable due to a sudden major issue, such as mold or a pest infestation.

7. Understand the Fair Housing Act

Fair housing laws are in place to make sure that landlords are not discriminating against certain tenants or rental applicants based on a protected class, including:

• Race
• Color
• Religion
• Sex
• Disability
• Familial status

You cannot refuse to rent to an individual, impose a different rental price, limit services, or evict a tenant based on these classifications. All landlords should have a solid understanding of these rules to avoid any instance of discrimination that can lead to lengthy, expensive, and damaging legal problems.

8. Enforce Your Lease Agreement Rules with All Tenants

If you decide to be too lax or easygoing when it comes to the rules established in your lease agreement, it sets a dangerous precedent. While many tenants are responsible and respectful of the property rules, others may not be as compliant. If they see one tenant getting away with something, they may try to take advantage of the situation.

Additionally, you run the risk of being accused of discrimination if you allow one tenant to get off with a warning but not others. It is best to stick to the fine print, enforce the rules and penalties fairly, and be consistent with your tenants across the board.

9. Have a Plan to Market Your Rental

Now that you have a great rental property that’s ready to go, how do you get the word out that you are looking for a tenant? In such a competitive rental market, it takes more than just simple word of mouth. It is vital to have a strategic marketing plan in place to reach the right people and fill your vacancy quickly.

You can increase your property’s visibility and competitive edge by advertising in the right channels, using an experienced digital marketing company, and building relationships with other real estate professionals.

10. Consider Hiring a Professional Property Manager

In many cases, new landlords could use the help of a professional when trying to successfully manage their investment, deal with tenants, stay on top of maintenance, and handle finances. Finding a balance between the business and their personal lives can also be challenging. This is when it may be time to consider working with a property management company.

Hiring a property manager takes much of the day-to-day responsibilities off your shoulders, which can give you time to focus on growing your business or investments. The Henderson and Las Vegas property managers at Black & Cherry can help you optimize your rental income, advertise your vacancies, keep your tenants happy, and maintain your rental property.

To learn how we can help you, contact our property management team today!