Are you a first-time landlord in Chandler, AZ? If so, tip number one: forget what you've seen on HGTV and treat your property as a business.
For new investors, this can require a serious mind shift. These days, we keep hearing about how we should love what we do. Though there's value in that approach, it can lead to bad habits that will be hard to shake.
So, how do you start treating your property as a business? Simple: be a pro about everything, from doing a rental analysis to inspecting the property. Here are some tips that will help you get started!
Draft a Strong Lease
Every first-time landlord can benefit from a strong lease. A typical lease agreement will outline key terms such as:
- Length of the tenancy
- Late payment fees
- Rules on pets and smoke
- Utility responsibilities
A well-drafted lease provides peace of mind and helps you avoid legal issues. For tenants, a lease offers clarity on what you expect from them. You and your tenant should both sign the lease before the start of the occupancy.
Conduct a Rental Analysis
There's a lot riding on doing a proper rental analysis. Your rent price will directly affect your rental income forecasting. For best results, you'll need to strike a balance between setting a competitive price and making a profit.
A good investment property evaluation starts with looking at rental comps. What are other landlords in your area charging? Once you know that, you can make adjustments based on your unique circumstances.
Inspect the Property Regularly
Smart maintenance can make a big difference to your rental yield. This is why you should regularly conduct the following inspections:
- Move-in and move-out inspections
- Routine inspections
- Seasonal inspections
- Drive-by inspections
Move-in and move-out inspections are particularly important. Comparing the conditions gives you the perfect way to assess damage in your rental. Make sure to take photos or videos for an easier comparison.
Ask for a Security Deposit
Taking care of your rental is one of the best property investment strategies you can have. The thing is, even the best tenants can cause damage. To account for the cost of repairs, ask your tenants for a security deposit.
In the Chandler real estate market, you can charge no more than one and a half month's rent for the deposit. When collecting the deposit, clearly state the amount in the lease agreement.
Require Renters Insurance
Renters insurance isn't required by law in Arizona, but you may still want to make it a condition for moving in. This insurance helps protect tenants from theft or damage. It can also provide liability coverage for injuries.
In Arizona, most renters insurance policies include four standard coverages:
- Personal property coverage
- Personal liability coverage
- Medical payments coverage
- Loss-of-use coverage
More on Becoming a First-Time Landlord
As you can see, being a first-time landlord isn't a walk in the park. If you need help with any of these tips, consider hiring a property manager.
At Aloe Property Management, we can conduct a rental analysis to help you make data-informed decisions. We also offer a Happiness Guarantee: you can cancel your agreement with us at any time with no penalties!
Want to know more about our property management services? Schedule a free consultation right now!
