Monday, 23 October 2017

7 Things To Know Before Becoming A Landlord

Written by Posted On Sunday, 27 August 2017 03:27

The number of people looking to purchase their first home has been decreasing steadily over the years. This figure keeps getting smaller as the 40% population of home buyers which used to be attributed to those buying for the first time continues to decline. 

So what is the implication of this decline?

It just means that there are more opportunities for homeowners to become landlords by renting out their homes. There are certain things you should know about being a landlord before you jump at this opportunity.

Below are seven things you should consider when you decide to become a landlord;

  1. Have a place close to the property

To ensure you can properly monitor the repairs and also be readily available if your property is put up for rent, you should live close to the property. There are areas which are perfect for rentals, and if you don't live close to such areas, you can invest in a property then hire the services of a property manager to take care of these issues.

  1. What does the law say

Understanding the landlord-tenant provisions in the state you live in gives you a lot of tangible information that can stop you from ignorantly breaking any law. Don't overlook housing discrimination laws, so you don't end up with a fair-housing violation.

  1. Rent should be paid when due

Building a good relationship based on respect with your tenants is good, but getting too friendly with them may cost you. Once you start getting too friendly, you start to overlook minor delays in payment of rent, and before you know it, you're going crazy trying to get your rent for the last half of the year.

  1. Screen potential tenants

A good background check before accepting a tenant can save you troubles in the future. Ask for references, either from their last landlord or employer. Also look into their credit history and how comfortable you are when discussing with them. A credit history may not apply to everyone but use it when it does.

  1. The lease should be in your favor

A standard lease can be gotten online, but it may not meet your requirements. All you need to do is to tailor it to meet your demands. You can set your rules on pets, parking, or any installation on the property.

  1. Inspect the property regularly

Having proof of the condition of the property before renting it out can make your scheduled inspections have more impact. If you find faults, having a picture of the area before you rented it out serves as proof. This makes it easier to issue a compliance notice.

  1. This is a business investment
  2. Becoming a landlord is not a free ticket to relax and expect the money to just flow in. There will also be money going out to get the income you desire and the money spent will be from your pocket. There are taxes you need to pay on the property and insurance you need to get as a landlord. You also need to consider costs of renovation before you rent out the property, and sometimes you should be promoting your property with promotional codes too.
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