In the Las Vegas rental market, there’s a high demand for well-maintained homes in desirable neighborhoods. When you have a home to rent out, whether it’s a home you once lived in yourself or a property you decide to buy as an investment, you’re well-positioned to earn high recurring rents. You’ll also see your property increase in value all while your residents are paying down your mortgage and contributing to the expenses associated with that property.
Investing in Las Vegas real estate is an excellent idea.
But, are you ready to become a landlord?
Owning even one rental home is a lot of work, and before you begin the process of leasing, managing, and maintaining both a property and a tenant, you need to ask yourself whether you’re ready to become a landlord.
Being a landlord seems to be easy; you find a tenant and you collect rent. This is the basic function of a landlord, but there’s actually a lot more involved, and it can often feel like you’re taking on a full-time job when you rent out a property.
Being a landlord is not always easy. It requires knowledge, skills, and talents that you may not possess. There’s a lot of detail involved, a lot of legal and regulatory hurdles, and a customer service mindset that keeps you focused on your tenant as well as your property.
There are a few things you need to consider before you begin your work as a landlord.
Here’s what they are.
Do You Know the Laws and Requirements for Renting Out Las Vegas Homes?
Landlords face some legal requirements. You need to understand the fair housing laws and the security deposit requirements in Nevada. You cannot raise the rent without 60 days of notice, and you cannot file for eviction until you have filed the property notice.
Las Vegas landlords need to understand the difference between a pet and a service animal/emotional support animal. You need to know the legal disclosures required in your lease agreement. If you don’t have at least a basic knowledge of landlord and tenant law in Las Vegas, you are probably not ready to be a landlord just yet. Educate yourself on all the relevant state, federal, and local laws. Get some help from a Las Vegas property manager if you’re struggling to understand how to keep yourself and your rental property in compliance.
Landlords Must Treat Rental Properties Like a Business
When you rent out a property, you’re essentially running a small business.
Are you prepared to make business decisions about your rental home, or are you still emotionally attached to it?
It’s possible you’re renting out the house you grew up in. Or, maybe you’re giving up your home to move in with someone else, or even get married. Maybe you have a home that you’ve inherited from a relative, and you have some feelings about it.
Feelings are fine, but you have to treat this property like a business. You cannot feel too emotionally attached to it, otherwise you’ll have a difficult time being a landlord.
Renting out a home is good for you as the landlord because you have the opportunity to earn monthly income. But, you’re also providing a property that someone else will turn into a home. Tenants are your customers, and you have to approach the landlord/tenant relationship with a customer service mindset. If you cannot do that, you’re not ready to be a landlord.
Making Your Las Vegas Property Ready to Rent
To succeed as a landlord, you need to provide a rental home that tenants want to live in.
Your best prospective residents are looking for clean, well-maintained homes in good neighborhoods. If you lived in the property yourself before deciding to rent it out, make sure you clean out all of your personal belongings. You don’t want to leave anything behind, even if it’s something you think new tenants might like. Your residents will want to move into a clean, empty space with their own belongings.
All repairs will need to be made before you rent out your home. Conduct a walk through before you list your rental home. You’re ready to be a landlord if you’re willing to make all the necessary repairs and replacements that tenants will expect. If you’re not willing to invest the time and the resources into making your property rent-ready, you may not be ready to attract and place tenants.
Have the home professionally cleaned. Every surface needs to shine. Invest in good cleaning and in good landscaping so you can create the kind of curb appeal that’s necessary.
Before you become a landlord, make sure you’ve converted your homeowner’s insurance policy to a landlord policy. If you don’t have the right coverage, a potential claim may be denied.
Understand the Screening Process
Even experienced landlords will hand the screening process over to a Las Vegas property manager or a third-party screening service. This can be a precarious undertaking, especially if you don’t understand the fair housing laws around screening. You also need to know what makes a good tenant.
If you’re going to be a landlord, you cannot choose tenants just because you like them. You need a documented set of rental criteria and a system for screening that ensures every applicant is treated the same and measured against consistent standards.
Tenant screening is one of the most important things that a landlord can do. The type of tenant you place in your property will have a huge impact on the rental experience you have. With a good tenant, rent will be paid on time, your home will be well-maintained, and the lease terms will be followed. You won’t find much wear and tear when the tenants move out.
Bad tenants are a risk, and that’s why tenant screening is so important. You’re not ready to be a landlord if you cannot recognize the traits of a bad tenant. They often cannot provide proof of income. They’ll owe outstanding debts to former landlords. They may have evictions or judgments.
Screen tenants carefully while complying with all fair housing laws. If you’re not sure you have the resources or the knowledge to do this correctly, it doesn’t necessarily mean that you’re not ready to become a landlord. It simply means you need some support from a Las Vegas property manager or a professional screening service.
Landlords Must Maintain Rental Properties
Maintenance is always going to be a concern, whether you’re becoming a landlord for the first time or renting out your home for the tenth time. You need to plan on emergency maintenance and routine repairs. You need to budget for the small fixes and the big projects.
As a landlord, you’ll need to plan for preventative maintenance as well. By investing in a preventative maintenance plan, you can expect:
- Fewer emergency repairs
- Lower maintenance costs overall
- Happier tenants, who are likely to renew their lease agreement
- A property that’s in good condition and increasing in value
Maintenance is a huge part of being a landlord. Even if your home is newer and in great condition, you’re going to have to perform some ongoing walk throughs, service calls, and work in order to keep it in great condition.
You can’t be a landlord until you are prepared to handle repairs and replacements. You’ll need to conduct walk throughs, too.
Put together a list of preferred vendors and contractors. This will help you handle maintenance with ease. It will provide peace of mind, protect your property, and ensure that all repair requests are managed in a timely and professional fashion.
Your vendor list will be critical. Maintenance costs have been going up across the country, so you’re looking for licensed and insured professionals who can do high-quality, cost-effective work. Put together a list of plumbers and electricians as well as roofers, cleaners, handymen, HVAC technicians, and landscapers. Establishing relationships with these vendors before you need them will help you maintain your rental property better. You don’t want to be looking for a plumber in the middle of the night when your tenant reports a major leak.
Las Vegas Property Management
There are many other considerations that go into becoming a landlord. Many rental property owners choose to work with professional property managers because it saves time and money. More important than the time and money is the experience. When you partner with Las Vegas property managers, you can leverage experience, resources, and relationships. You’re handing your valuable investment property over to a team of experienced professionals who have been leasing, managing, and maintaining investment properties for years.
Even if you are ready to be a landlord, property management in Las Vegas can help. You’ll find you have a better – and more profitable – rental experience. We’d love to talk with you about the services we can provide. If you’d like to hear more, please contact us at New West Property Management. Our team expertly manages residential rental homes in Las Vegas and throughout Clark County, including Henderson and North Las Vegas.