With tenant occupancy rates of 94.4%, Orlando remains a hot rental market. Even so, investment success isn't guaranteed -- especially for first-time landlords.
Why are first-time landlords at a disadvantage? Simple: when you first look at your to-do list, the sheer number of things on it can be overwhelming. You're expected to know everything, from doing a rental analysis to serving proper notices.
Not sure where to start? Here are some essential tips that every first-time landlord in Orlando, FL should know!
Know the Local Laws
First things first: check your local regulations to ensure your property complies with them. This includes zoning laws and building codes. Don't cut corners on what you need to do to stay compliant, as that could lead to fines.
Keep in mind that tenants in Florida have an implied warranty of habitability. This means your unit must have the essentials required to live comfortably. It also shouldn't have conditions such as rot and mold.
Conduct a Rental Analysis
Next, you should optimize your rental pricing strategy. Look into what your property includes and use these data points to figure out how much to charge for it. Some key factors you should consider include:
- Number of utilities
- Pet-friendliness
- Parking spaces
A rental analysis can help you determine which unique features of your property justify a higher rate. This evaluation also looks at Orlando rental market trends to ensure you're not losing money.
Screen Applicants Carefully
Every solid rental income strategy relies on good tenants. During the screening process, look for red flags on credit reports such as late payments. Make sure the applicant has resolved these issues before considering them.
If one of your prospective tenants has a criminal record, don't dismiss them outright. According to the Fair Housing Act, doing so would mean discriminating against them. You also can't discriminate against applicants based on:
- Race
- Religion
- Family status
- Disabilities
- Gender
Tell Tenants What to Expect
Once a tenant has moved in, inform them of their responsibilities. Send them a welcome letter that includes your rental rules. While you're at it, let them know how they can contact you or your property manager.
The letter should also outline the process for paying rent. Florida doesn't require rent receipts, but you should still track your payments. For best results, offer as many rent payment methods as you can.
Serve Appropriate Notices
Protecting your property investment involves knowing your notices. Some notices allow tenants to cure the lease violation, such as by paying past-due rent. Most notices have specific requirements you'll need to meet.
In some cases, you may need to send a termination letter. This usually applies to tenants who are damaging the property or are a nuisance to others. If so, talk to a lawyer or property manager to determine how to proceed.
Should You Go It Alone?
The bottom line: being a responsible landlord is hard. Is this your first time managing a rental property? If so, consider hiring a property management firm to assist you with rental analysis, tenant screening, and other tasks.
At Bahia Property Management, we serve all types of properties in Orlando, FL. We're a BBB A+ rated and accredited business trusted by over 400 property owners. Contact us here to learn about our 120-day satisfaction guarantee!
