Becoming a landlord has many benefits, such as an additional source of income. But it’s important to remember that being a landlord and renting out a residence is still a business, and some basic business fundamentals are necessary for success.
A rental agreement comes with duties and responsibilities for which you and your tenant will be liable. As outlined on the Sun Life Financial website, there are a couple of key business management tips to help you manage these duties and responsibilities. Two noteworthy highlights are:
- Landlord-Tenant Relationships: It’s important to develop a positive relationship with your tenants. It helps build your reputation, and helps keep good tenants coming back. It can also help you avoid conflicts. For example, if rent is a day late one-time, should you take legal action? The answer depends your relationship with the tenant. If this happens a lot, you may want to consider seeking legal advice on your options. If you talk to your tenants and discover there was a compelling reason for the delay and work out a reasonable solution, you may be able to avoid a more combative situation.
- Know your do’s and don’ts: It’s important to understand the legislation regarding rental properties. It will allow you to understand what you are responsible for, what terms and conditions you may create in your rental agreement, and the restrictions you can and can’t impose. Understanding the rules will also inform you of what your options are when there is a conflict.
If you do find yourself in a conflict with a tenant, it’s best to consult a legal professional to understand how the laws apply in your situation, and what your legal options are both inside and outside of court.