Are you ready to be a Philadelphia landlord?
Renting out a Philadelphia home delivers a lot of opportunity and the possibility for a steady stream of rental income. Maybe it’s the home you once lived in yourself or a property that you recently inherited. Or, maybe you’ve found the perfect first investment and you’re ready to arrive on the rental market as a landlord and owner.
Whatever your situation, you have some new responsibilities that will need your attention. Not only are you responsible for your property, you also have responsibilities to the tenants who are living in it. You need to know the laws and the best practices. You need to understand the rental market that you’re now a part of.
If this is your first experience renting out a home, you may be wondering where to start. We’re here to tell you what those first steps are in becoming a landlord.
Step 1: Make Sure Your Philadelphia Property is Rent-Ready
Before you start earning rent, you’ll need a good tenant.
Good tenants are looking for great properties.
Whether you’re renting out a home that was once yours or you’re renting out a property that you purchased, it has to be move-in ready.
This means a few things:
- Removing all personal property from the home. There should not be any furniture or belongings left behind. Clean out everything except the appliances.
- Look for opportunities to make some cosmetic upgrades. Any maintenance issues will need to be taken care of right away. You cannot market a rental home that does not have running water or heat. Fix any loose floorboards. Make sure the doors and windows lock. Once you know it’s habitable and safe, turn your attention to cosmetics. Is new paint needed? How are the floors? Could you make any cost-effective improvements that will make it more attractive to tenants?
- Pricing the rental home in accordance with the Philadelphia rental market. You want to price your property competitively so you can attract the best tenants. We recommend a comparable market analysis to get the right price, and if you don’t know what that is, get some help from a Philadelphia property manager.
Once you’ve established a rental value and made all necessary repairs and improvements, you get to begin marketing the home.
Create an online listing with great photos and detailed descriptions to attract as many potential tenants as possible. Remember that tenants will likely gravitate towards the photos first. Make sure there are a lot of them. Descriptions should be concise, and don’t forget to include your contact information.
Step 2: Protect Yourself and Your Investment
If you’re renting out a home that you once lived in, you’ll have to convert your insurance policy from a homeowner insurance policy to a landlord policy. Otherwise, you may not be covered if there’s a claim. Talk to your insurance agent and make sure you have enough coverage for your property and your liability. You’ll also want to discuss things like loss-of-rent insurance.
Spend some time educating yourself on the state, local, and federal rental laws. You’ll need to know what’s required in terms of fair housing compliance. You’ll need to understand security deposit laws and eviction laws. Do you know what’s required in a lease agreement?
Landlords can get into a lot of trouble by making mistakes that seem pretty innocent. You cannot ask a prospective tenant if they have children. You cannot screen one application differently than another. You cannot ask for more than the equivalent of two months’ rent when collecting a security deposit. You can’t deny a tenant a service animal even if you don’t allow pets.
There’s a lot to know, and mistakes get pretty expensive. Educate yourself or surround yourself with experts who can help you protect yourself from risk and liability.
Step 3: Schedule Showings and Screen Philadelphia Applications
Interested tenants will start emailing and calling with requests to see the property. Make sure you’re responsive. Tenants will quickly move onto the next property if you’re not willing to talk with them. Schedule showings at times that are convenient for the prospective renters.
Provide legally compliant applications and make sure you screen them thoroughly and consistently. This is an easy place to make an expensive mistake. Fair housing laws dictate what you can and cannot consider when choosing a tenant. Make sure you understand the process, and document every application you screen.
Screening requires that you check:
- Credit history
- Eviction history
- Criminal backgrounds
- Rental history
- Income and employment
Sometimes, landlords will do the bare minimum when it comes to screening. This is dangerous. You need to place well-qualified tenants in your property.
Step 4: Preferred Philadelphia Vendors and Contractors
If you find a qualified tenant and you collect the security deposit and get your resident moved in, you might feel like the hard work is done.
But, not really.
From this point forward, you’ll need to come up with a plan to collect rent and enforce your lease agreement. You’ll also need to be available to your tenant. It’s your job to respond to any routine or emergency maintenance calls.
Maintenance is especially crucial. You never know when your tenant will call to report a leaking water heater or a problem with the roof, so have a list of preferred vendors ready to take your call. You’ll need licensed and insured professionals who can provide high-quality, affordable services when you require them.
Step 5: Work with a Professional Philadelphia Property Management Company
Getting started as a new landlord can be overwhelming and time consuming. It’s easy to make expensive mistakes. Don’t wait for those mistakes to happen. Work with a professional management company that has the experience and the professionalism to effectively and profitably manage your rental home. You’ll get your time back and you won’t have to worry about what you don’t know.
We can help you. Our services are comprehensive and include everything from marketing to screening to creating legally compliance and enforceable lease agreements.
Contact us at TCS Management to learn more about how to feel prepared as a landlord.
TCS Management is a full service property management company headquartered in Philadelphia, Pennsylvania, also serving Harrisburg, PA, Cherry Hill, NJ, Wilmington, Delaware and the surrounding areas. We focus on single-family and multifamily residential property management of homes, condos, townhomes, and apartment buildings.
