Education and news for smart DIY landlords!
As a landlord who's about to enter 2020, there are some things you should know that could impact your business. We've put together a list of four trends that are coming to the rental housing industry this year. Hopefully, these insights will help you plan your efforts! Keep reading.
It's no secret that a lot of landlords struggle to get paid on time. But here's what's interesting: Tenants now want landlords to report their rent payments (according to a survey by TransUnion). Knowing that their payments are reported motivates them to pay on time. That's because it allow them to build and maintain good credit. With good credit, tenants can also get a car loan and mortgage. On the other hand, less-motivated tenants will be motivated to pay on time to avoid the consequences.
For years, landlords have placed their focus on marketing to millennials. But many members of gen Z (individuals born from 1995 onwards) are now at a point in their lives where they need to rent. Landlords should be prepared for this. Keep in mind that you're dealing with a tech-savvy generation. Think of the ways you can attract them with technology. For example, online rental payments and fast internet speed in your area.
Collecting the security deposit upfront before renting out a property is an essential step to ensure that the landlord is protected from damages caused by tenants. However, some city lawmakers seek to help tenants avoid security deposits and have them pay a small monthly fee or get an insurance policy instead. This strategy can put landlords at risk for losing money. Think about it: A tenant could damage your property before they're able to pay up. (Here's an example of a security deposit restriction in Cincinnati, OH)
A 2018 study by TransUnion revealed that tenant fraud affects over 80% of property managers. To make the problem more serious, many cases of fraud were not discovered until scammers missed their rent payments. Since automated online rental application is on the rise, we can expect tenant fraud cases to increase as well. The best way to avoid this problem is to screen all potential tenants in person. Let them fill out a rental application only after you have met them. Pre-screening prospective tenants over the phone also allows you to catch red flags before meeting them in person.
Let these trends guide your rental property business in 2020. Which of these are you more concerned about? If you need solid advice this year or want to get started with landlording, feel free to check out our courses.
If you’re ready, make Landlord Prep your go-to resource for landlording education. Here, we offer a complete DIY landlording course to get you on the right track. Join our academy today. If you want, you can check out Flavia’s real estate investing webinar first!