Stepping into the role of a landlord for the first time can feel like navigating uncharted territory. Whether you have acquired a second home, built rental units, or simply want to generate income from your existing property, becoming a landlord comes with both opportunity and responsibility. To make your journey smoother and more rewarding, it is important to understand the legal, financial and interpersonal aspects of property management.
Below are 10 key tips every first-time landlord in Malawi should keep in mind as you prepare to rent out their property.
1. Understand Rental Laws and Legal Obligations
Before you hand over the keys, it is essential to understand your responsibilities as a landlord even in the absence of a formal Landlord and Tenant Act, as is the case in Malawi. While there is no specific legislation governing rental relationships, general legal principles and contractual obligations still apply.
You are expected to provide a safe, habitable property, clearly outline terms in a lease agreement, and follow fair procedures when handling issues such as rent collection, notice to vacate, and security deposits. Without a legal framework to lean on, well-drafted tenancy agreements become even more important. Consulting a property lawyer or working with a registered real estate agency helps ensure that your practices are ethical, professional and in line with best practices protecting both your property and your reputation.
2. Choose Tenants Carefully
Finding the right tenant is one of the most important decisions you will make. A good tenant pays rent on time, takes care of the property, and communicates respectfully. On the other hand, a poor tenant can lead to months of unpaid rent, damage, or even legal conflict.
Take time to screen tenants properly. Ask for references from previous landlords, verify employment or proof of income, and confirm their identity with official documentation. While it may take longer to find a suitable tenant, it saves you time, stress, and money in the long run.
3. Create a Clear, Legally Binding Tenancy Agreement
A tenancy agreement is more than a formality. It is a legal document that protects both parties. It should clearly outline the rent amount, payment schedule, duration of the lease, rules about property use, maintenance responsibilities, and procedures for renewal or termination.
This agreement serves as the foundation of your rental relationship. Ensure that both you and the tenant understand and agree to its contents before signing. Having a lawyer or property expert review the document before use is always a smart move.
4. Set the Right Rental Price
Determining how much to charge for rent requires careful thought. You want to ensure the price reflects the property’s value while remaining competitive in the local market. Charging too much could result in long vacancy periods, while setting the rent too low reduces your returns.
To find the right balance, assess similar properties in the area, taking into account factors like size, location, furnishings, and amenities. You can also seek guidance from a real estate agency, which may have access to market data and price trends.
5. Prepare Your Property for Tenants
The presentation of your property directly influences the type of tenants you attract. Before listing the property for rent, ensure that it is clean, secure, and in good working order. Address any needed repairs, repaint where necessary, and check that all electrical and plumbing systems are functional.
Tenants are more likely to respect and care for a property that is well-maintained and move-in ready. This also sets the tone for a professional landlord-tenant relationship from the start.
6. Keep Records of Everything
Record-keeping is an essential part of being a landlord. From signed agreements to rent receipts and maintenance invoices, these documents form your paper trail and can be critical in the event of disputes or audits.
Make a habit of organizing all your property-related paperwork in one place, whether physical or digital. Keep records of communications with tenants, notice letters, and any financial transactions linked to the property.
7. Budget for Maintenance and Repairs
No matter how new or well-maintained your property is, repairs will be needed over time. It is important to set aside funds for both routine maintenance and unexpected issues. Promptly addressing tenant concerns such as a leaking roof or faulty wiring, improves tenant satisfaction and helps retain responsible renters.
As a landlord, you are legally and ethically obligated to ensure the property remains habitable throughout the tenancy.
8. Consider Using a Property Manager
If you are busy, live far from the rental property, or are simply unsure about managing tenants on your own, hiring a property manager can be a worthwhile investment. Property managers can oversee day-to-day tasks such as tenant screening, rent collection, maintenance coordination, and inspections.
This option reduces your workload and gives you peace of mind, especially if you plan to expand your rental portfolio in the future.
9. Maintain Professional Boundaries
Being approachable and fair is important, but so is maintaining professionalism. Set clear expectations, communicate politely, and respect your tenant’s privacy. For example, if you need to visit the property, always provide adequate notice.
Avoid treating the rental arrangement casually, it is a business transaction and should be managed as such.
10. Know Your Tax Responsibilities
Rental income is considered taxable income in Malawi, and landlords are expected to declare it in their annual returns. Additionally, some expenses related to the upkeep and management of the property may be tax-deductible.
Consult a tax expert or accountant to ensure you are meeting your obligations and maximizing any deductions legally available to you.
Bonus: Insure Your Property
Property insurance is often overlooked by first-time landlords. Imagine—after all the hard work—seeing your property vanish to a natural disaster, fire, theft, or vandalism. It’s a heartbreaking scenario, but one that property insurance can help protect against.
As a landlord, safeguarding your investment with the right insurance policy is a crucial step. Look for landlord-specific coverage that protects both the building and any fixtures or furnishings you provide. Some policies even cover loss of rental income if the property becomes uninhabitable.
Speak with a trusted insurance advisor to find a policy suited to your property type and location. It’s a small price to pay for peace of mind.
Conclusion
Becoming a first-time landlord involves more than just renting out space—it requires planning, legal knowledge, and good communication. By understanding your responsibilities and following these tips, you can avoid common pitfalls and enjoy the benefits of a successful rental business.
At Reynolds Portfolio, we are committed to helping new landlords navigate the real estate landscape with ease. Whether you need help with letting your property or any service in between, our team is here to support you every step of the way. We’re just WhatsApp away — feel free to reach out anytime!
