Many people believe that renting a home is a good way to supplement their income. While this is true and investment properties can make someone lots of money, you may not be that someone. Not everyone is cut out to be a landlord, and if that’s the case then selling your house may be a better option. The idea is to figure out where the money is going to be, with the smallest amount of effort and interference into your life. To find out, be sure you look into the follow bits of information.
- You will need an experienced eviction attorneys in case a challenge arises. There are many laws about rental properties including upkeep as well as payments. Most of these laws protect the renter more than than the landlord, so it’s important that you have expert advise.
- Your insurance could increase the premiums as liability is greater in a non-owner occupied home.
- How will you respond if your tenant says they can’t afford to pay the rent this month because of more pressing obligations? Something could come up and some landlords will allow a renter to skip a month and make it up in chunks on their future payments or even take it out of their security deposits. The important thing is to have a plan in place before you let someone live in your home.
- Repairs and tenant concerns will come up. Are you ready to take those calls? Will you hire a property manager to deal with them instead? You’ll also want to consider the cost of the repairs and upkeep. You will also need someone to complete those repairs.
- You’ll need to outline your house rules ahead of time. This means having an attorney draw up a contract for you. But you’ll also have to decide if you’ll allow pets or smokers, can they paint and change the decor, etc.
- You’ll need to inspect the property. Many landlords do this when they pick up the rent check. Sometimes it’s mailed or paid into an account via transfer. Some landlords don’t visit their properties at all.
- Another decision will have to be how you will decide who to rent to. Not everyone can pass a credit or background check. And some who do may not be worth it. Are you going to be the one getting the calls when they are locked out of the house or can’t figure out how to use a garbage disposal?
These are just the planning stages. There is so much more that goes into being a landlord, but it start by being prepared. If you are looking to purchase an investment property or have decided you’d rather sell your home, call Helen today at 847.967.0022 or email [email protected].