Although I am renting my current place in HK, I have a place that I am renting out in Toronto. So I guess you could say I can see both sides.
As such, there’s a couple of things that as a Landlord you should do, to not only ensure that your rental property is successful, but also to ensure that your tenant is happy.
And of course, do know this is just my opinion =p
1) Do a background check on the prospective tenant
Yes, it may seem weird to check out a tenant’s background before they even rented out your place. But this is a vital step to minimize the risk of non rental payments by the tenant.
Couple of things to look out for is employment, rental history (if any), who is going to be living there. These things ensure that your property will be rented out to the most suitable tenant.
2) Ensure your place is ready
As a tenant, this is one of my pet peeves. If I am living at your place, everything better be fixed and ready to go! This includes little things like cupboard handles, furniture fixings (if any). Luckily my landlord in HK is gracious enough to fix all the bugs with my flat.
Ensuring a smooth transition to your tenant is key, as it keeps them happy. Happy tenant, happy landlord.
3) Respect their privacy
I believe in Toronto, once you have rented out your place to somebody else, you can no longer enter their place unless you have permission. Or else this will be deemed as breaking and entering.
That is illegal.
If you do need something, call them up! Ensure clear communication to avoid any misunderstandings in the future.
4) Build a rapport
When it comes to holidays, send a card to them! Everyone likes little things like that. And by doing that shows the tenant you care, and who knows may be the difference between them renewing the lease and not!
5) Build a fund for the next tenant
Of course, in the real world not all tenants will renew. As such, it’s imperative you keep a savings from all the rental income you’ve earned so far. This fund is used to ensure the place is fixed up and cleaned for the next potential tenant.
You wouldn’t want to show a dirty, broken place to a potential tenant right?
Currently, my model is save 100% of all rental income (after mortgage and management fee). If you finances allows it, i think this is best. Especially since interest rates will go up which will affect your mortgage payment (it’s really low right now). You want to ensure you have sufficient funds to sustain your property if it unfortunately (knock on wood) becomes vacant.
Well that’s the about it for me. Just a little tid bit that I learned so far.
Will post soon about my new flat!! Busy furnishing right now!!
The shit that I’ve done doesn’t really make sense
Show em how to behave, show em how to go far, show em
How to believe, show em just who you are