Becoming a first-time landlord can be an overwhelming task. But, it can be a successful endeavor – especially if you learn and adapt along the way. To ensure you avoid common pitfalls and maintain a successful investment, take a look at these tips for first-time landlords:
DO NOT Cut Corners on Documentation
Paperwork is essential to being a successful landlord. With that in mind, never cut corners! Make sure you have the following important forms: condition reports, state-specific leases, locally required disclosures (lead, radon, mold, occupancy limits), rental application, etc. While you can keep these forms online, it is essential to have additional hard copies of every document.
Know the Local and Federal Fair Housing Laws
Not knowing the local and federal laws can be the costliest mistake of being a landlord. Before you start renting the property, ensure you research the Fair Housing Laws – both federal and local. These laws prohibit discrimination and vary by state and city.
Always Screen Your Renters
Screen every renter by a set of requirements – a rental application and a quick conversation about their income, employment and reason they are moving should do the trick. In the rental application, make sure you as for past/current landlord, work and personal references. Nothing is worse than waiting on late rent and having to go through the costly and time-consuming eviction process. A responsible tenant makes being a landlord all the more enjoyable.
Don’t wait to invest, do it now. Buying a rental property can be done in a variety of ways. Here’s a look at a couple of options:
- House-Hack: Buy a property and live in part of the residence. You can accomplish this by purchasing a duplex, a home with a basement, a property with a garage apartment or by merely renting out extra rooms.
- Sweat Equity: Purchase a property that needs some work and, by using your muscle power, add value that didn’t exist before.
Here’s the best tip of all!
Hire a Property Management Team
A property management company can help you locate an investment property and handle all the day-to-day operations!
Contact TALK Property Management for more information.