If you have a home or apartment that you aren’t using, you may be undecided if you should rent it or sell it. However, the real estate market may help make this decision for you if you are having problems selling your property. There are a number of advantages to being a landlord, and one is being capable of running a business on your own. Being aware of specific tips that can increase your profitability and decrease your level of stress in this role may be helpful to you. Consider the following when selling no longer makes sense, and renting is the best option.

Tip #1: Create a Contractual Agreement

In order to make this a smooth transaction for the length of the lease, you should have an agreement in place, between you and the tenant. This should include several items that must be followed by both parties.

You should list the length of time the property will be leased. It is, usually, to your benefit to establishing a long-term agreement with the tenant if possible. This will help you constantly avoid looking for a new person to occupy your rental unit.

Tip #2: Include Specifics of Rental

This contract should include the terms and conditions of the rental. For instance, if you don’t want pets on your property, this should be listed. Be sure to provide specific details that you should be followed by the tenant.

Tip #3: Include Payment Details

In an attempt to avoid conflict regarding the rental payment, you should have all of the details clearly defined before renting. This includes listing the amount of the monthly rent, the date you prefer to receive this amount, and if any late fees will be applicable.

Tip #4: Provide a Notice of Entry

It is legally required that you inform you tenant when you intend to visit the property. You will want to inspect the interior and exterior of your real estate, periodically. Most states make it necessary for you to provide at least a 24-hour notification of your entry in the rental unit.

Tip #5: Make Repairs as Needed

It is important to keep the person renting your property happy during the time the property is being rented from you. This means fixing any items that may break down in a timely manner. Consider establishing a set period for the completion of repairs. For instance, you could set a goal of 48 hours and aim for this when possible.

The key to having a successful landlord business is investing the necessary time and effort to do so. By creating a plan and working with the tenant to resolve issues as these arise, you can make this happen with ease and increase the amount of your bottom-line in the process.

By Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to [email protected].