First-time landlords are a unique group of people. Some are homeowners looking to upsize or downsize and want to lease their homes. Others are investors seeking ways to fund their retirement or quit their corporate jobs. Some may be accidental landlords who must turn their primary home into a rental property for one reason or another. Whatever category you fall into as a first-time landlord, know there will be some struggles initially while you find your bearings. If you find yourself in this position, read along as we review survival tips for first-time landlords.
Contents of This Article:
- What First-Time Landlords Should Know
- Survival Tips for First-Time Landlords
- How Can Professional Management Help?
What First-Time Landlords Should Know
If you are a first-time landlord, it is important to understand that there is more to managing a rental property than signing a lease agreement and collecting monthly rent checks. Unfortunately, many new landlords do not understand this concept and are overwhelmed from the get-go unless they have a Northern Virginia rental property management company to work with.
There are several steps to renting out a property. For instance, you have to market your property online so that people can see it. Then, you must connect with prospective tenants, conduct screening, and select people to live there. In addition, you have to conduct inspections to make sure your property is up to date with local rental laws and safety codes. If something happens at the property, you must ensure you can go there for maintenance or repairs.
Feeling overwhelmed yet? Don’t worry—you’re not alone. That’s why we are sharing some of our best survival tips to help you navigate the rental property world more easily.
Survival Tips for First-Time Landlords
Being a landlord is not easy–especially if you plan on managing your rental properties by yourself. That said, it’s important to have realistic expectations of what you must do to keep your rental business running smoothly. With that, here are some essential tips for first-time landlords.
- Have a Realistic Timeline
- Understand Your Expenses
- Make a Checklist
- Have Open Lines of Communication
- Be Strict About Rent Payments
- Know When to Outsource
Have a Realistic Timeline
Getting into the rental property business, regardless of your situation, is the same for everyone regarding one thing: the goal. The goal is always to generate positive cash flow.
The problem is that many first-time landlords think they will immediately generate a ton of cash flow. Whether you’re looking to pad your vacation funds, pay off your mortgages, or quit your job, it will be a while before you generate enough cash to do these things.
Those who have been in the business for some time know that turning a rental property profit is a marathon, not a sprint. Like everything, it takes planning, time to build success, and enough money to reach your goal. That is not to say you can’t do it—just take it slow, have a plan, and know that there will be some setbacks along the way.
Understand Your Expenses
As survival tip number one explains, turning a profit (unless you are somehow incredibly lucky) is no easy feat initially. There are initial expenses 
that come with owning a rental property that you should be aware of before investing. Additionally, knowing that some of these expenses are not just initial costs is important. Instead, they will likely follow you the entire time you own rental property. Here are some of your expected expenses:
- A sizeable down payment for the property
- Additional financing for the mortgage
- Repairs and upgrades you need or want to make
- Property taxes
- Insurance
- Attorney, accountant, or property management fees
In the end, budgeting for emergencies and recurring expenses associated with your rental property will help you keep afloat even when you are just starting out.
Make a Checklist
If you are not going to enlist the help of a property management company (though it is highly recommended), consider making a checklist of the entire leasing process so you don’t miss an essential step. This will include things such as:
- Property advertising
- Tenant screening
- Property walk-throughs
- Lease agreement drafting and signing
- Regular inspections
- Rent collection policies
- Eviction procedures
And that is just the beginning. It is key that you do not leave out a critical step—some regions have specific landlord-tenant laws that must be followed precisely regarding tenant placement.
Getting your local property management team to help is the best way to avoid any trouble. After all, they are knowledgeable about tenant placement. Additionally, they can manage your property throughout the lease term by quickly and efficiently addressing any major issues, even legal ones.
Have Open Lines of Communication
Communicating with your tenant is a great way to build a strong landlord-tenant relationship. As a first-timer, you may be blissfully unaware of how often your tenant wants to communicate with you. From maintenance and repair requests to complaints about neighbors and the many reasons why his/her rent will be late that month, there is always the chance your tenant will have a lot to say.
This means that email, phone, text, and snail mail should all be options for communicating with your tenant unless otherwise specified in the lease agreement. This also means that your tenant will (and should) have access to you 24/7 for emergencies.
If you do not want to deal with this hassle or an angry tenant, a great solution is to hire a property management company to handle all communication with your tenants.
Be Strict About Rent Payments
It is so easy to fall into the trap of letting a month or two of rent payments fall into the “Late” category. This is especially true if your tenant is genuinely a good person and has a seemingly legitimate excuse. However, to avoid this perpetual problem and the possibility of non-payment, it is best to set the rules hard and fast at the start of the lease term when it comes to paying rent. Here are some things you should do:
- Determine acceptable forms of payment
- Choose a due date and specify grace periods if applicable
- Designate payment methods (e.g., mail-in, online portal, walk-in)
- Calculate a late payment fee
- Outline late rent policies, including eviction procedures
The key here is to ensure your tenant understands your rent policies and the consequences of failing to pay on time. This way, if anything should require legal action, you can prove you protected yourself to the best of your ability and that your tenant was fully aware of the lease provisions.
Know When to Outsource
Your rental property will fall victim to some damage while your tenant resides there. This is inevitable. And, while some repairs are easily fixed without the help of a professional contractor, there will be times when hiring an expert is necessary.
Knowing when to outsource repairs to a hired expert will save you time, money, and frustration. Just because you think you can fix something in your rental property does not mean you have the skills to do so efficiently. In addition, if you are constantly fixing your rental property and managing everything else, you will lose out on precious free time. Sometimes, hiring a professional is the smartest choice.
How Can Professional Management Help?
One of our best survival tips for first-time landlords who are new to the rental property business is to enlist the help of a property manager who can take care of all of the above. Honestly, unless you have been studying how to be a great landlord and shadowing someone in the industry for some time, you probably do not have much experience with managing rental properties. And, if your goal is to make money, learning as you go can be one of the biggest ways to fail at achieving a positive cash flow.
If you are a first-time landlord and need help managing your rental properties, contact Bay Property Management Group. As Northern Virginia’s leading property management company, Bay Property Management Group offers property owners a whole host of services that help them avoid any kind of trouble.
From professional property advertisement to eviction processes and everything in between, BMG gets it done so you don’t have to. So don’t wait to get the peace of mind you deserve as you embark on this journey as a first-time landlord; get in touch with Bay Property Management Group today.
