This is a great time to buy a 1 to 4 family unit as an investment property. Likewise, it is also an optimal time to purchase a higher value residence and convert a current residence into an investment property that will become a rental home. A rental home can be a satisfying investment that both increases in value and generates cash flow. The following are a few valuable tips for emerging landlords and will hopefully prevent eviction problems.
• Buy a property that is as appealing to a landlord as it would be a tenant. Avoid properties that need a lot of work.
• Have minimum requirements for tenant qualification. Apply the same rules to all tenant applicants. Check credit, rental history and employment. Exceptions are all right if they can be offset by a stronger qualification elsewhere such as lower income but excellent rental and employment history. Any requirements must conform to equal housing laws that prevent discrimination due to race, religion, gender or marital status.
• The home should be clean and fresh and all mechanical equipment must be in good working order. Smoke alarms must be new enough to conform to local and state fire code. A document completed by the tenant noting adverse conditions at move in will prevent conflict when the tenant moves out. This document will also provide information to the property owner as far as defects that have been missed. With this document, tenants are assured they will not be held responsible for defects they did not cause. Taking care of details at the outset and then following up promptly keeps good tenants happy and motivated to take good care of your property.
• Use a standard, legally approved rental agreement. If it is possible, join a landlord’s association and get blank contracts as one of the member benefits. If a landlord’s association is not available, rental contracts are widely available online. Any landlord would be well advised to be familiar with contract and to adhere to landlord obligations. Tenants perform better when landlords perform well.
Insights In Law: Landlord and Tenants legal Rights
There are many landlords that rarely see their tenants and receive the rent on time every month. Many tenants enjoy the rental home they live in and take excellent care of the property. The best landlord/tenant situations occur when the landlord takes care of problems promptly to keep well qualified tenants happy and responsible. It is important to be realistic. The tenant knows that the rent could be raised, the property owner may want to sell and he/she cannot perform improvements to their home without the landlord’s permission. It always helps when the landlord expects the tenants to act like good tenants and responsible adults as opposed to property owners. Tenants cannot be expected to act like homeowners. That is the landlord’s job and if it is well done, in most cases, the results are an excellent investment a landlord can be proud of.