Real estate is one of the most trusted and surest ways to gain wealth. Everywhere we go is Real Estate, and we are always on somebodies property. Being a Realtor, I held many buy property and often help first time buyers become landlords. This is a great thing to do and can save and make you a lot of money, and sometimes result in you living rent and mortgage free. Its not easy of course and will take patience and being in the know. Here are 6 things to know before becoming a landlord.
It may seem pretty obvious but sometimes, ones hometown isn’t the best place to own a multi-family home. You want to be able to be within reasonable driving distance to the property so that you’re not going out of your way to visit it.
Know Landlord laws
Knowing what you’re legally able to do is often an overlooked step. While you may have experience dealing with a landlord, that’s not enough to handle a new tenant relationship. Knowing the laws and loopholes of this business relationship will keep you in the clear and out of court. Your local laws are located on this site. https://www.jud.ct.gov/lawlib/law/landlord.htm
Enforce timely rent payments
This is another overlooked thing. The best way to go about this the right way would be to possibly list a late fee to rent in the lease. Keep in mind this is business, so regardless of a friendship developing, rent still is late after the 10th. By all means, keeping a good relationship can be done and while being firm on when payments are due.
Screening new tenants
Choosing the wrong people will make this experience that much worse. Its always hard to choose tenants because they’ll be on their best behavior to get you to rent to them. Credit, background, calling employers/past landlords, and interviews should all be things done with potential tenants. https://www.tenantverify.net/ is a great resource in this aspect of being a landlord. Evictions can be costly and taking the time to recoup that money can be lengthy. Solve the problem before it becomes one.
Make the lease work for you
While many use standard leases, there can be rules and terms added. You can do a month to month, annual lease, or any other length of time you’d like. Other normal conditions added are things such as No smoking, limiting number of occupants, parking, and anything the owner wants to keep in a certain way. Another huge thing that should be clearly put in the lease are pets and whether they’re allowed or not.
Check on your property regularly
You can have something written in the lease where regular inspections occur. Even if you don’t go that route, driving by and visiting your property should still happen. Little problems can become bigger ones if not found and corrected right away.
I hope that this gave you a better understanding of what it takes to succeed as a landlord and property owner. As always, if you need further advice, please reach out to me directly.