Owning property can be a great way to earn some extra income without needing a huge time commitment, as long as you manage it well. Plus, if you ever need cash down the line, you can always sell the property. Here are some key tips to help you become a successful landlord.
Get the Right Insurance
Regular home and contents insurance won’t cut it for landlords. You’ll need Landlord Insurance, which covers events that might happen when you’re renting out your property and not living there yourself. This type of insurance is designed to protect you because someone else is living in your home, and you can’t control what happens there.
Know Your Tenants
As a landlord, it’s important to get to know the people renting your property. Building a friendly relationship from the beginning helps create a positive experience for both parties. It makes it easier for tenants to approach you with any issues, and you’ll feel more comfortable communicating with them too.
Respect their privacy. By law, you can only visit the property with at least 24 hours’ notice (except in emergencies), and most tenants appreciate minimal interference. So, build a good rapport, learn a little about who’s living in your place, and generally, let them be.
Keep an Emergency Fund
Having some financial backups is a smart part of any plan. As a landlord, you should always keep a reserve fund. This should cover various expenses, from quick repairs to updating the decor. If you own multiple properties, make sure your saved amount reflects that.
Also, watch your spending carefully. Smart and early investments can save you money in the long run, especially when it comes to your properties. Putting money into quality improvements for your tenants can extend the life of your investment, meaning you won’t have to dip into your savings or make insurance claims as often.