Property owners in St. Louis are generally very active about renting out their units. As a recent property owner, you’ve probably thought of doing the same thing. However, you need to evaluate the obligations that come with it to ensure that you become a good landlord.
As a St. Louis landlord, you will need to perform multiple tasks, including finding the right tenants, maintaining the property, and handling legal concerns related to the property. We have often seen that new landlords discover later that they’re not a great fit for running a rental business and they end up selling the property to cut losses.
Based on our experience, you should ask yourself the following questions to see if you are ready to be a full-fledged landlord before putting your property on the rental market.
1. Can You Treat Your St. Louis Home Like a Business?
If you are renting a house that you have lived in for a few years, it is quite natural to have an emotional bond and beautiful memories associated with it. However, when you plan to rent the property, you need to be emotionally detached and look at it from a business perspective. Not only should you give your tenants the freedom they need to reside in the rental, but you should also accept the fact that there may be wear and tear or deterioration of the property.
2. Do You Have the Expertise for Screening Tenants?
As a landlord, you will need to screen potential renters before finalizing them, or else you might end up renting to bad tenants who can damage your property. You must evaluate their financial standing, credit score, criminal history, rental history, and overall behavior. However, verifying these requires expertise and resources, and you need to be prepared to put in that extra effort.
3. Can You Handle Extra Costs Without Rental Income?
Renting a property is not just about earning monthly income. It also involves expenses, such as repair costs, insurance, taxes, utility bills, and mortgage. Make sure you have enough savings to manage all these expenses as you can’t rely completely on rental income, considering that tenants may fail to pay rent sometimes.
4. How Are You Planning to Manage Your Property Yourself?
Many aspiring landlords fail to recognize the importance of upkeep and rent their properties, only to realize that it’s not their cup of tea. Once you rent out the house, the responsibility of keeping it clean, addressing repair requests, maintaining the appliances and other systems, inspections, and others, will ride on your shoulders.
Creating routine and emergency maintenance policies and setting an annual budget for the same can be beneficial. It would, however, be most beneficial to hire a property manager for the same.
5. Have You Considered the Cost of Vacancy?
Even if your property is in a good location and offers modern amenities, you can’t guarantee that it will get rented instantly. You will need to market the unit and bear the costs of advertisements as well as home upgrades for attracting potential renters.
6. Are You Planning to Move Out Of The State?
If you’re planning to move out of the state for several reasons like employment, health issues, or any other personal reasons, you might want to rent your home instead of selling it. But, how do you plan to manage the rental from a distance?
If you don’t have a property manager on board, you will need to attend to tenant calls on a daily basis, coordinate with vendors and contractors, manage financial accounts, among other tasks, which can be overwhelming. Plus, you will also have to keep up with the laws of the place where you no longer live. A local property management company can manage all of this efficiently at reasonable rates, allowing you to become one of the reputed landlords in the neighborhood.
Hiring property managers can help you manage your rental and increase its value by managing the asset on your behalf. They can help you become a successful landlord by enabling you to build a positive relationship with your tenants.
Amoso Properties is a full-service property management company in St. Louis, also serving St. Charles, Clayton, Ballwin, and St. Peters. We manage single-family and multi-family apartments. We understand your rental requirements and can assist you in managing your St. Louis rentals effectively.
For more information, contact us at Amoso Properties.