How to Start A Property Business

Credit: Michael P

Starting a property business is a solid way to create either a small or large income stream. Whether someone has dozens of properties or just one, it’s important to know what’s required before becoming a landlord. After all it takes more than just putting out a “for rent” sign and waiting for someone to move in.

Step One: Get Your Building Up to Code

Before you can ask people to move in and start paying rent you have to make sure that the property is up to code. This means it has to be solid, all repairs have to be made, and it has to pass muster for a residential living space (or an office space if you’re renting office space instead of living space). In addition to making sure the building is ready for people to move into though you also need to be sure that it conforms to all local laws for rental properties. You may need to get inspections performed, licenses issued, or zoning changed in order to be a commercial location, which all needs to be squared away before you even think about letting someone sign a rental contract.

Step Two: Draw Up Your Papers

A rental property is only as strong as its contracts, which is why it’s imperative to hire a representative and to draw up papers for your future renters. A contract needs to lay out your renters’ responsibilities, what you will and won’t cover, and every detail of the rental agreement. This includes everything from fees and rent to which problems will be fixed by property maintenance and which ones will be charged to the renter. These contracts need to be above board as far as the law is concerned, and they need to be tight so that you don’t leave anything gray or unclear when your renters should be given details.

Step Three: Get Insured

There’s one more thing to do before you open your doors and start renting out your properties, and that’s make sure you get insurance for your budding property business venture. While it might not sound like a necessity insurance can often be the difference between recovering from problems and having your business ruined by a few bad tenants. Insurance offered by companies like CIA insurance allows landlords to cover unpaid rent (which can put a significant strain on the property), property damage, and other unforeseen circumstances. Whether you have one property or a hundred it’s important that they’re all covered in the event that something goes truly wrong.

Step Four: Start Renting

Once you have all of the basics taken care of the next step is to start renting your properties. This means advertising, setting up viewings and appointments, and in some occasions negotiating with potential tenants regarding their demands. Once tenants shake on the terms and sign on the dotted line though you’ll see your income from the properties begin to rise. After you’ve started down the path all you have to do is keep the property cared for, make sure rental spaces are filled, and handle complaints in a quick, efficient manner in order to keep your property business running smoothly.