Here are a few essential tips every new landlord should know before renting out their property.
Tip #1: Make yourself very familiar with Landlord-Tenant Law. In the past five years laws have changed so much that it is hard to keep track of what you can and cannot do. A landlord must constantly be keeping up with law changes and new legislation. If you don’t, you could quickly find yourself in some costly legal disputes.
Tip #2: Conduct regular property inspections. Doing a quick walkthrough of your property and taking photos to document condition at least once a year can prevent so many headaches. The fact that you are just checking on the property reduces the small lease compliance issues that tenants think they can get away with. This will also tell you how the tenant takes care of your property. Just because they pay rent on time, doesn’t always mean you will renew their lease if they are causing heavy wear and tear to your property.
Tip #3: Have enough money in reserves for emergency repairs. We have seen many property owners and landlords live rent payment to rent payment. They are then unable to make emergency repairs like heating and cooling or large kitchen appliances. The best thing you can do as a landlord is have three months of rent payments in a reserve fund or emergency fund. Then when the AC goes out in July you can take care of it quickly and maintain happy tenants. Washington State also has mandated timelines for certain repairs and if you don’t have the funds for one of these repairs this may also cause you to be in legal hot water.