Things to Know Before Becoming a Landlord

Things to Know Before Becoming a Landlord
Becoming a landlord can be rewarding personally and financially. To make this work, proper homework is needed. Let’s share some useful tips for making this leap.

If you plan to become a landlord, give home inspection its due importance. Home inspection helps you to know what repairs or replacements are necessary. Leave no part of your house unchecked.

Underestimating the costs of fixing and maintaining the property before and after a tenant has moved in will prove to be a rookie mistake (e.g., missing expenses like regular maintenance, garbage removal and gardening). As a landlord it would be wise to set aside 35-45% of your annual rental income for covering such costs.

A landlord looking for a tenant must avoid being casual; find out whether your potential tenants meet the criteria, by interviewing them on phone. The source and amount of their income, their credit report and their references must be checked.

Ensure that you know the federal, state and municipal laws, regulations and building codes that apply to rentals, if you’ve decided to become a landlord. Housing agency is common in most of the states; and at the regional level, you will find a municipality office. You can communicate with someone from the department in charge of laws and regulations through a phone call or by meeting them in person; this will help you in getting familiar with rental laws and regulations.

Get the lease signed, once you find a great tenant. Your tenant is your customer, so make sure you treat them right. Remember that as a landlord, you’re running a business. Doing right things will heighten your chances of success.

For any assistance regarding your real estate endeavors, like home buying or home selling, feel free to reach out to us. We will be more than happy to help.