With 41.7% of properties being used as rental units in Omaha, NE, it can be easy to become a landlord. However, being a successful landlord is another task.
If you recently started renting out a property, then there are some essential things you need to know to make an ROI.
Learn about the top five tips for new landlords below.
1. Screen Your Tenants
When becoming a landlord, your first worry might be getting and keeping your property occupied with tenants. However, not all tenants are desirable.
You want tenants that will pay rent on time, keep your property in good condition, and won't cause any disturbances. To find these renters, you need to screen your applicants. Using a background check tells you a person's rental history, credit score, and criminal records.
2. Get a Separate Bank Account
Rental properties may have once been your home, but now they are considered part of your business. To keep it separate from personal matters like finance, you should open up a bank account just for your rental business.
This account will collect rent, disperse maintenance costs, and manage rental deposits. By keeping these banking records in one account, creating budgets and filing taxes becomes easier.
3. Create a Maintenance Plan
One of the most important landlord tips is to get your maintenance schedule and procedure under control. You can hire a property manager to collect maintenance requests, conduct routine maintenance, and hire professionals to perform necessary tasks.
By having a maintenance plan, you will keep your property in pristine condition and make your tenants happy. This will allow your property to retain a high value and attract more renters.
4. Charge the Right Rent
Much of the country has seen a large increase in rent prices in the past year. This trend is no different in Omaha, as it saw an 11% increase from 2021 to 2022.
As prices fluctuate greatly each year, it is important to know where your rental property stands within the market. As a first-time landlord, you may charge the average price based on the number of bedrooms/bathrooms, locational, and square footage. However, you can include unique amenities to slightly increase your monthly rent.
You should also include a minimum rental price percentage increase so renters who renew their lease are aware of how much rent will go up, according to the Omaha rental market.
5. Get Insurance
Once you become a landlord, one of the first items on your to-do list is to buy landlord insurance. This type of insurance covers property damage, liability, and protection against loss of income.
You can also require your renters to have insurance so that damage to their possessions are also covered. This means that you won't be liable in a situation where items inside your property are ruined.
Get Help With Landlord Duties
For new landlords, trying to manage all of these tasks can be overwhelming. Luckily, there are ways to get help and outsource many of these duties.
By using a property management service, you can ensure rent collection, maintenance requests, and much more are handled without any stress.
Start by contacting us today to discuss which services you require.
