Are you a first-time landlord in South Bend, Indiana? While it's had a slight population decline since 2020, it's still a popular city to live in. It has a median income close to $70,000, making it a great place to run a rental business.
However, as a first-time landlord, you'll find that running a rental business isn't the easiest venture. Nevertheless, if you follow the basics, you'll have no problem succeeding as a landlord.
We'll share the importance of rental analysis, one of the key steps you'll need to take before starting as a landlord.
Here's what you must know:
What Is a Rental Analysis?
A rental analysis helps you assess the value of your property. This gives you a better idea of how much to charge as a rental fee. You can hire a professional property management company to conduct the rental analysis.
They can help you maximize your rental income. They'll look at the property's value as well as the rental market trends. This will help them assess how much you should charge.
You don't have to charge this exact amount. However, it's usually best to stay around the price the property management company suggests. This price range is more likely to attract potential tenants.
Best Practices for First-Time Landlords
Now let's look at the necessary steps you'll have to take to succeed as a first-time landlord. Your first step should be to ensure property maintenance. You'll need to hire a rental property inspector before seeking tenants.
These inspections will allow you to check for any damage to your property. The inspector will let you know if you need to make any repairs or renovations.
Even during a tenant's stay, you might want to conduct one or two inspections. This also holds your tenants accountable and ensures they look after your property.
Your property manager can assist with seeking tenants. Through tenant screening, they'll filter out the right tenants for you. These will be tenants who can afford your proposed rental fee without issue.
They'll do a thorough background check to make sure the tenant doesn't have a criminal background. This saves you time in having to meet different potential tenants.
Your focus should be on tenant renewals. If you have a great tenant, it's best to get them to extend their stay rather than having to find new tenants. Make sure you communicate with them often during their stay.
If there's an issue with the property, you must attend to it immediately. Treat the tenants as you would any other customer in a traditional business.
Succeed as a First-Time Landlord
You now understand the importance of a rental analysis and what to do to succeed as a first-time landlord.
You must conduct a rental analysis to understand your property's value. This helps you set your rental fee. Afterward, make sure you follow our best practices to succeed in building your rental business.
PMI Michiana is South Bend's leading property management company. We have over 20 years of experience in the industry and look forward to speaking with you.
