If you're looking for a city to invest in, then Huntsville, Alabama, is one of the country's best options.
It's touted as the best city to live in this year, which means that local landlords have many opportunities. But what happens if you're a first-time landlord in Huntsville?
You want to make sure you have the best experience and that you guarantee a long-term relationship with your tenants.
Here are the essential tips for new landlords in Huntsville:
1. Research the Laws
Your first step should be to research the laws regarding rental property in Alabama. Before seeking tenants, you want to understand these laws and prepare a rental agreement that enforces them.
You'll need to ensure that your tenant doesn't violate these laws. But you'll also have to be a responsible landlord who doesn't overstep their boundaries either!
2. Take Time to Decide the Rental Price
The next step is to decide how much you'll charge for rent. You want to charge an amount that'll cover your basic expenses plus leave room for profit.
However, you also must be reasonable within your rent prices. It's best to research similar properties within your locale. You can charge higher than the average amount, but only if it's justified.
For example, if your rental property is in proximity to the city's attractions, etc., you can justify increasing the price. You can also increase the rental price to accommodate allowing pets inside the property.
If you wish to renew your rental agreement, you can raise the rent prices. But you must be careful that you don't raise it too high. If you want to retain your existing tenants, you'll also have to explain why the rent prices have to be increased.
3. Focus on Renewals
Once you find tenants, your next step should be to keep them if you've had a great experience.
You have to start thinking about how you'll retain tenants. For example, you might want to offer them a discount if they sign a longer contract for renewal.
Alternatively, you can also be flexible with renewing a contract. Let's assume you first made them sign a 12-month contract. You can offer a 10-month contract next time if they aren't ready to commit to another year.
You can also consider adding amenities for them if needed. You can provide a faster internet connection, for instance. You can upgrade the appliances, etc.
Always be available for your tenants when they need you. This ensures they'll feel comfortable with you and increases the chances of a renewal.
Succeed With These Tips for First-Time Landlords
Now you know how first-time landlords can succeed with renting out a property in Huntsville, Alabama.
Start by researching the laws for landlords and tenants in Alabama. To guarantee a long-term relationship, you'll have to keep up your end of the bargain.
Research rental prices before deciding on what you'll charge. Once you've found your tenants, make sure you focus on renewing your rental agreements.
If you want to succeed, you should consider the help of Alabama's best property managers. At PMI North Alabama, we'll be glad to serve you.