Since 2022, we've seen an increase of at least 63% in properties for rent. If you're a first-time landlord in the Dallas-Fort Worth area, this is an exciting opportunity to bring in extra income.
But how do you succeed as a new landlord? How do you keep tenants and maximize your earning potential?
This guide will help you understand rental analysis and other strategies to become a successful landlord.
Here's what you must know:
Why Rental Analysis Matters
Your first step is to analyze the real estate market in the Dallas-Fort Worth area. This will give you an estimate of how much you can charge as rental income.
You don't have to be committed to this price. You can always charge a higher price than quoted. However, a rental analysis gives you a realistic expectation of how much to charge to reach a higher pool of tenants.
Find the Best Tenants
Once you've reached potential tenants, you'll have to filter out the right ones. When you find a great tenant, you'll also have to keep them. If your tenant doesn't renew their lease, you'll have to go through the stress of finding a new one.
As a new landlord, you may not think this is a big deal. However, this is what many successful landlords try to avoid. Make sure you always offer the best experience if you want your tenants to renew their lease.
Collect Rent Payments Online
While you may prefer cash, there are several advantages to getting paid online. It's of course more convenient as you don't have to meet your tenant.
However, online payments also provide a digital receipt. You can provide your tenant with a written receipt, but they can falsify these if they don't pay. Online transactions offer more security.
Make sure you save PDF copies of your digital receipts. This is crucial in case of any disputes.
Provide a Written Rental Agreement
Even if you rent to your closest friends, you must get everything in writing. The rental agreement should specify the following:
- The rental fee and the deadline to pay
- Make sure you outline late fees, if applicable by law
- Who handles bills, maintenance fees, etc.
- State that tenants have to pay for maintenance if they've damaged the property or appliances
- How long will the rental agreement last?
It's always best to hire a lawyer to help you prepare the rental agreement. They'll ensure the contract complies with the law. They can also help you enforce the rules and assist you with resolving disputes.
Succeed as a New Landlord
Now you know the best landlord tips to build a lucrative income with your rental property in the Dallas-Fort Worth area.
Once you conduct a rental analysis, you'll have an idea of how much to charge for rent. The next step is to find the ideal tenants and then work towards keeping them!
But the best way to succeed is to have a property manager by your side. With over 20 years of experience, PMI Premier is the best choice for new landlords.
Contact us today to get started!
