Renting out one of your properties to good tenants can definitely be a lucrative way to earn some extra money, in Chicago or elsewhere. If you are really lucky, you can even use the rent to pay for the mortgage. In a way, the property is already paying for itself. That is the beauty of real estate investment.

But being a landlord comes with a lot of demands. Sure, screening tenants, marketing rentals, and leasing agreements are just some of the major things you need to do, but when you are unlucky and somehow end up with unfavorable tenants, evicting them can be one of the toughest tasks to do.

Note that a landlord can use the services or a specialized real estate agent in Chicago or anywhere in the nation in order to manage most of the paperwork for them. If properly setup, all his rental income can be run on autopilot, letting him cash every month a nice passive income.

To become s successful landlord, here are some of the tips you can follow to avoid sour relationships with your tenants.

Treats It As A Business

No matter how you see the property and who are the people living in it, it is crucial that you treat is as a business. Which means, if they have been missing out on monthly rentals, it is time to conduct legal actions, even if you are renting the property out to family friends or relatives.

Have a system in place and make sure these are all stated in the contract. Use a quality real estate broker to make sure all such legal technical details are properly incorporated in your legal documents. Take repairs, maintenance, and upgrades seriously as well.

Thoroughly Screens Aspiring Tenants

When you have a property for rent in a good neighborhood, you can expect so many applicants. Ask about their livelihood or profession. If the household’s family income is at least 3x the cost of your rental, they could be good candidates. However, regardless of how much money they make, it is still important to run a credit and background check. Ask for referrals from previous landlords and avoid tenants with past evictions.

Seeks The Advise Of A Lawyer

Anybody can draft a contract. To be save, ask an attorney to review the lease contract. That way, any errors can be spotted and the necessary corrections can be made. Furthremore, landlord-tenant laws can be a bit tricky. So it is possible that some of the provisions you placed in the lease are in actual illegal.

Gets The Right Insurance

Finally, as the last tip, you need to make sure that you have the maximum amount of rental insurance and property liability insurance required. This will also help you in case of any unforeseen circumstances that can put your property at risk.

Being a landlord requires work, but it can be a rewarding and profitable way to use your property. If you wish to eliminate some of the stresses of becoming a landlord, you can hire a property management agency. This is also one of the suggestions Kale Realty gives to their clients who are also aspiring landlords.