How to Start an Apartment Rental Business Checklist

How to Start an Apartment Rental Business Checklist

There are many things to consider and many other preparations to make before starting your own property rental business. Below is a checklist that will help ensure a smooth and profitable outcome for your business.

Follow the laws of the land– Find out what laws govern the hiring of your type in your area, follow agreements, conditions and restrictions. Carefully read any such documents that define the rules for the area in which your home is located and sign any necessary contracts/agreements BEFORE you enter into a contract with your tenants.

License and Permits – make sure that you have filled out all the necessary documents and have all the necessary licenses and permits to rent your home in the area where it is located.

Safety rules – each state or province has its own safety specifications. Make sure you follow the rules set out for your home as a rental.

Insurance – insure your home, purchased contents insurance as well as tenant/rental insurance. It’s always better to pay a little more each year than to be at the mercy of fate when it hits you.

advertisement – later in this book you will find a very detailed advertising strategy for your rental home, but here are just some of the highlights:

a. Research and decide what your best advertising options would be.

b. Register with some of the most popular online rental websites where you can advertise your property.

° С. Make a copy that you can offer to other websites and spread it in both the physical and virtual worlds.

e. Take photos of your property morning, noon and night to make a stunning portfolio; have a virtual tour ready to walk around the house when you need it.

e. Create a website if possible and display your property there; it will be very easy to provide the link to your potential tenants by email or otherwise.

f. Tell your friends, colleagues and relatives about your property. This will make great word of mouth advertising.

Rental agreement – you need to have a standardized rental agreement. Check with your local real estate board, they often have a very detailed residential tenancy agreement for a small fee or even free.

taxes – understand the tax obligations and benefits in your state or province. Pay particular attention to capital gains and tax relief eligibility.

payments – income and expenses should be clearly understood so that you know where you stand financially at any given time. Here are some steps that will help you in this direction:

a. Calculate your breakeven point.

b. Set up a rate chart that covers your daily/weekly/monthly/yearly rates.

° С. Develop a system by which you will be able to understand your cash flow, expenses and net income.

e. Develop a payment schedule.

e. Prepare standard forms and letters for easy communication.

Support – maintaining your home is an important activity that requires your attention. Unless the house is well maintained and cared for, your guests will not be able to comfortably settle in your home. Here are some important points to remember:

a. Provide clear instructions for disposing of trash.

b. Provide a phone number for emergency contacts.

° С. Provide clear instructions, with a diagram if possible, of what maintenance you expect your tenants to do and what will be done by you. See Lease Addendum – Policies for a sample repair addendum on the “Property Management Forms and Letters” disc.

e. Make sure all repairs and renovations are completed before guests arrive.

e. Arrange for a reliable cleaning service or housekeeper (in the case of vacation rentals; in a non-rental rental, cleaning will be the tenant’s responsibility)

General: This covers several things that would facilitate a comfortable stay for your tenant:

a. Provide informational documentation about attractions in the area.

b. Provide a list of your dining, shopping and entertainment recommendations. This will be extremely well received by your tenants.

° С. Provide a tourist map of the city, a public transport map if you have one, and the numbers of several taxi companies.

e. Provide an up-to-date yellow pages book.

lessor – effective communication is very important both before and after finding the right tenant for your home. Here are some guidelines:

a. Take some time to prepare standard answers to the most common questions you will receive.

b. Create standard procedures so that you and your tenant know how to proceed in certain situations and have the same expectations. An example of such a procedure would be a check-in and check-out procedure/policy.

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