What to Consider as a Landlord
Are you considering an investment property where you plan to act as a landlord? Before you put your property on the market to lease, be sure you’re prepared with these tips, to avoid the pitfalls of a rental property.
Know Your Local Laws: Educate yourself on local landlord-tenant laws, to ensure you’re operating within the legal boundaries of your state.
Have a List of Solid Vendors: Leaks, broken appliances, burst pipes - they’re all a part of normal wear & tear to a home. Having a good handyman, plumber and electrician you can call in a pitch, is critical to ensuring your property stays in great condition and your tenants stay happy.
Have the Right Insurance: Homeowner’s policies may not cover everything you need it to. Make sure your tenants get renter’s insurance and consult with your own insurance company, to ensure everyone and everything is property covered.
Build a Reserve Fund: Tenants may break a lease, major repairs may need to be made to your property - whatever the reason, making sure you have 3-6 months worth of reserve funds is critical. If a tenant breaks their lease, that may be several months worth of mortgage that you will need to cover. Or if a big ticket repair is needed, having a reserve fund will alleviate any financial stress.
Find a Knowledgeable Realtor: Working with a realtor who is knowledgeable about the rental process has major benefits. Your realtor will thoroughly assess the market, to ensure the property is priced correctly and competitively. Your realtor will also be able to provide strong guidance on tenant screening procedures and leasing contracts. All that to say, working with a realtor pays off as you navigate financial (and emotional!) success in the real estate investment market.
Interested to learn more about the real estate investment process? Click HERE to request a free copy of my Investor’s Guide.