Important Things to Consider When Renting Out Property – Winston Rowe and Associates
Renting out a property can be profitable, but there are a number of potential issues to watch out for.
By: Winston Rowe and Associates
1. Tenant Reference and Employment Checks
This should go without saying, however, too many landlords meet prospective tenants in person and trust them because they are nice and affable people.
2. Systems Failing and Things Breaking
Have a plan before things break and systems fail. Build relationships with plumbers, electricians, handymen, etc., creating a strong network of vendors that you can trust.
3. Eviction Rights
Don't rent to anyone you can't evict. Who rents your home will make or break your rental income?
4. Realistic Rent Amounts
Check local rental listings to find out what you can realistically charge. If you want to find a good tenant, the rent must be comparable to the going market rate.
5. Local Laws
Landlords will be tempted to rent more space than is locally allowed, such as a finished basement that is not approved as a legal unit.
6. Your Investing Goals
One thing many first-time landlords forget to do is define their investing goals. We certainly did this with our first rental property.
7. If the Numbers Work
Before you get emotionally invested in the idea of converting your home into a rental, you have to run the numbers.
8. Condition of The Home's Maintenance
In assisting a client with finding a rental property, you must consider the condition of the home's maintenance.
9. Getting Long-Term Tenants
Consider finding tenants that are interested in longer-term leases as this will save you time and money in the long run.
10. Renters Insurance
Make sure that the tenants who rent my clients' properties have rental insurance coverage.
11. Vacancy Costs
Remember that pricing a property at market rate helps you become cash flow positive sooner and lowers vacancy costs.
12. Home Warranty Plans
Becoming a landlord? Be sure to pay a few hundred dollars a year on a home warranty plan that covers repair costs with a minimum fee upfront and make the tenant pay the fee each time.
13. Property Inspection
Getting a property inspection prior to tenants moving in is always a good idea.
Published by Winston Rowe and Associates https://www.winstonrowe.com