Landlording For Fun And Profit

If you are thinking that by becoming a rental property owner, you could turn a handsome profit,but you will probably have to work for it. Being a landlord is not an effort-free way to a fortune. Many people, through hard work and patience, have become very successful financially through rental property ownership, so it is worth your time to investigate.

If your thoughts are turning to becoming a landlord, then there can be no better time than now to invest in property. Rental housing is always in demand by people who do not have the means or inclination to buy. Properties close to amenities like schools, shopping, recreation and career opportunities are good investments.

Check out the average rent price for the property you are considering. Too low and you will get too many applicants. Too high and you may not get any. Check the Rent section of your newspaper for an idea of what the asking price is. Remember that rent is not necessarily 'free money'. You will probably have to pay the mortgage on the property with it, not to mention keeping a sum back for future repairs and maintenance of the property or replacement of broken appliances.

You should research your state's laws on landlord-tenant relations. Each state has separate laws concerning renting, so make sure that you have an up-to-date copy.

Finding good tenants requires some careful interviewing by the landlord. If you have more than one person applying to rent the property, you will want to meet the other parties. Determine ahead of time whether you are going to allow pets. Pets can cause a lot of damage to a property. However, a potential tenant with a history of pet care - spaying/neutering, regular vet visits, etc. can be an excellent caretaker of your property.

If the tenants have children, you cannot discriminate against them. However, you can reserve the right to rent to the person you feel will care for the property. If the tenants don't seem to care about what their children or their pets will do to your property, you should probably pick someone else. A potential tenant who brings their well-behaved children to meet you is less likely to tolerate drawing on the walls or paints on the carpet.

No matter what your gut feelings tell you, you should have a rental application on hand for each prospective tenant to fill out. This may give you an indication if that charming person looking at your house actually has no intention of paying the rent or caring for the property. Remember, the things that they don't fill out can give you some information about their intentions. Beware the person who has no references. Even students who are just starting out can have references from family friends or guidance counsellors.

Certain documents should be on hand once you decide on a tenant. A rental or lease agreement is another important part of landlord-tenant relations. In this document, both parties' rights and responsiblities are outlined and a copy is given to each. A walk-thorough checklist should be used to check damage or wear already present in the apartment so that both the landlord and tenant are aware of the present condition of the apartment and reparations can be made if necessary.

Each time a tenant moves out, you as the landlord will have to perform the following duties every time. Advertise the property, answer all the phone calls, interview potential tenants, check references, change the locks, repair and paint the premises, shampoo the carpets and spring clean the premises.

Marketing an empty rental property takes a lot of energy and expense. It usually costs you a months rent as you need the premises empty and rentable to make them attractive to prospective tenants. A long-term tenant can bring these vacancies to a minimum and consequently, your profits are going to be higher.

One way to keep a good tenant is to make the rent attractive. Consider offering a proven good tenant a deal on the rent if they will stay for a longer period of time. Adhere scrupulously to both the rental agreement and your state laws and allow good tenants the privacy they deserve. If you have to enter the premises, no matter what the laws say, it is a neighborly thing to alert your tenants as early as possible and enlist their help in scheduling a good time.

Being a landlord can be fraught with headaches, but it also can be a path to financial security. If you choose your rental property well, interview your tenants carefully, and keep up with repairs and maintenance, you will more likely have a good return on your investment.