Getting into the Nashville real estate game as a first-time landlord can be exciting and daunting at the same time. All aspects of it, from tenant screening to property management, are filled with opportunities and challenges.
Nashville's rental market saw 2% growth in 2021 and 2022. It began to soften in 2023 and continues in 2024 because of the number of new rentals on the market, making it tougher for new landlords.
If you're a first-time Nashville landlord, we have the tips and tricks you need to ensure investment property returns. Keep reading as we list our essential tips on rental analysis and everything else first-time landlords need to know.
Rental Analysis
Setting a competitive rental price is crucial to success as a first-time landlord. The way to do that is to conduct a thorough rental analysis.
When conducting a real estate analysis, look at comparable properties for size, location, amenities, and condition. What are the monthly rental prices? What is the condition of the properties?
Compare parking, outdoor space, and laundry facilities in addition to the number of bedrooms, bathrooms, and square footage.
Educate Yourself on Landlord-Tenant Laws
Familiarize yourself with the local laws and regulations about the tenant-landlord relationship.
Know the rules regarding lease agreements, eviction processes, and fair housing laws.
Screen Tenants Thoroughly
Tenant selection can make or break your investment. Good tenants are like money in the bank. Bad tenants can cost you money and cut into your profits.
When screening new tenants, conduct comprehensive background checks. Verify rental history, credit reports, and employment status.
Create a Comprehensive Lease Agreement
Your lease agreement should include essential details like rent amount, due dates, number of days in the grace period (if given), and payment methods accepted.
Clearly outline rules, tenant responsibilities, and termination clauses. Specify terms regarding the security deposit.
Maintain the Property Proactively
Attracting and keeping good tenants depends on how you maintain your property. Implement a preventative maintenance schedule.
Don't wait until things start to deteriorate. Respond promptly to repair requests.
Document Property Condition
Before a tenant moves into the property, take pictures so you have a record of the property's condition. Take photos after the tenant moves out. These photos will be important in case of a security deposit dispute.
Keep Detailed Financial Records
Open a dedicated bank account for rental income and expenses. Document all transactions and maintain receipts for repairs and upgrades.
Consider Hiring a Property Manager
A professional property manager can handle all aspects of owning a rental property. They'll take care of tenant screening, maintenance requests, rent collection, and more.
Enjoy Success as a First-Time Landlord
Now that you've learned more about rental analysis and other tips for first-time landlords, you're on your way to success. Make your property investments work for you.
If you're looking for a property manager to assist with your investment properties, we're here for you. We at PMI Music City will keep you abreast of rental market trends as we strive to increase the value of your property over time.
Contact us today through our website or by calling 615.424.5159 to set up a consultation.
