Trying to maximize rental income from your Fort Worth property? If so, one way to achieve that is to go down the For Rent by Owner (FRBO) route.
This approach means you'll have complete control over your property. You'll prepare the unit, make a lease, host tours, and so on. This will allow you to save on management fees and profit from certain tax advantages.
Not sure what it takes to be a successful DIY landlord in Fort Worth, TX? Read on for a list of successful landlord strategies you need to know about!
Determine the Rental Price
When you list your property, its rental price will be a key factor in drawing tenants. The best way to set the right price is to do a rental market analysis. This report estimates your unit's value based on nearby rentals.
Your rental price may also include certain utilities like water and electricity. Is your property in an attractive neighborhood? If so, it's generally better to make utilities the tenant's responsibility.
Prepare Your Rental
Upgrading your unit will make it more enticing to tenants. This can involve anything from painting the unit to upgrading your fixtures. If you need to invest in major renovations, it's better to do them before tenants move in.
You'll also need to ensure everything from the roof to the foundation is working as intended. This is an essential step in your property meeting Texas building codes and regulations.
Advertise the Property
Once your unit is ready for the rental market, it's important to present it in the best light. This involves writing a detailed ad and using quality photos. You'll also need to decide where to advertise your property.
While you're working on your listing, picture your ideal tenant. Think about how you can make your unit stand out to them. Incentives like reducing the security deposit can make a big difference here.
Screen Tenants Thoroughly
When it comes to landlord best practices, screening tenants deserves the top spot. By attracting and keeping quality tenants, you can reduce void periods and create a steady cash flow.
Your rental application can tell you a lot about whether an applicant is a good fit for your unit. That said, you should also run a background check and talk to their previous landlords to cover any blind spots.
Create a Lease Agreement
A lease agreement is key to any solid landlord-tenant relationship. A well-crafted lease will keep expectations clear and prevent any confusion over rules. It will also protect you from liability.
Your lease agreement also allows you to specify the permitted use of your unit. For instance, if you don't want pets, smoking, or other occupants on your property, put it in the lease.
For Rent by Owner: Is It Right for You?
As you can see, being a For Rent by Owner landlord is a time-consuming process. On top of that, it's very easy to make a mistake that could lead to legal issues. As such, the FRBO method isn't ideal for every landlord.
Need help with running your Fort Worth property? At 1st Choice Property Management, we've been helping landlords like you since 1993! Contact us here to hire our rental property management services!
