20 May 3 Things to Consider Before Becoming a Landlord
Renting your home and transitioning to a landlord has a lot of benefits and is a very easy and practical way to ease into the investment property game. However there are a lot of things to consider when it comes to renting your house. There are a lot of unknowns when becoming a landlord and it can be an exciting yet overwhelming time. Here is a list of 3 things to consider before becoming a landlord.
It is not a hobby, it’s a business.
First you will need to take into consideration the financial and time commitment. You will have to put in work. Any successful business requires a certain level of a financial and time commitment. Secondly, It is important to keep a professional relationship with your tenants. It can seem like a good idea to develop a friendly relationship and be involved in your tenant’s life. However, when you get too involved with your tenant issues can start to arise. You will start to make emotional decisions. If a tenant is struggling to pay bills and you make an exception to rent or other things you could set a bad precedent. If you don’t make exceptions for all your tenants or enforce rules differently you put yourself at risk for a fair housing lawsuit. Remember you are operating a business and for your business to run efficiently you need to maintain professional relationships.
Have a process and system in place
Having a set process and system in place for every aspect of your business will help everything run smoothly. You will need a system for screening tenants and placement is important, a system for how you will enforce your rules and lease, a system for collecting rent. All these systems are important in ensuring you follow the law and protect your property. Hiring a property management company or getting advice from one is a great way to help your business thrive.
Seek professional advice and guidance
There are several legal aspects of being a landlord you may have not considered. Knowing the state and local laws are important to protect yourself and your tenant. There are several laws and regulations from fair housing laws and security deposit disposition rules that you will need to be well-versed in. You should get proper professional and legal advice. Getting advice from a professional can also help you maximize your profit. From setting the rent at the right market price and knowing what fees to charge and how to enforce your lease, a professional property manager can send you in the right direction. Hiring a property management company is a great way to reap the benefits of being a landlord while running a low risk.
For my information about becoming a landlord or if you are interested in hiring a property management company email info@integrityrm.net
