How to Become a Landlord
Being a landlord can be extremely challenging and you have to be suited to handle the crisis and responsibilities that come along with it. It is definitely not an easy task to take on and can be fraught with a number of frustrations. The positive aspect is that you have the chance for a continual income from properties that you own and rent. It takes knowledge, determination, business savvy and wise decision-making to become a successful landlord.
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Instructions
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Find the best property at the best value. Look for one that is located in an area where there is good population growth and typical rent prices in that section of town are advantageous to earning you a profit. Make sure you get adequate insurance on your property, have all required licenses and pay all necessary taxes.
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Make sure your property is up to code. This may require you to put more money into it to clean up units, fix problems and make it habitable and safe for potential tenants. Neglecting to do this could result in legal difficulties in the future.
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Get familiar with local, state and federal laws regarding your responsibilities and possible liabilities as a landlord. Having this information beforehand can help you avoid running into trouble by knowing what you can and cannot do, from a legal standpoint. You can also learn what tenants' rights are, as well as what rights you have as a landlord.
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Develop good management skills. You will need them to take care of all of the issues connected to owning and renting a property.
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Decide fair rental agreement and lease terms. For example, you may offer leases for 3 months, 6 months, 8 months and 12 months, as well as month-to-month. You will need to include rental amounts and stipulations, such as rules related to loud music, noise, pets, criminal or inappropriate behavior, etc. Determining factors for eviction need to be clearly spelled out. If you aren't sure about the terms of your rental agreement contract, let a lawyer read through it to see if you need to make any changes.
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Start looking for tenants. This will require some heavy-duty advertising, such as online ads on apartment rental websites, advertising in the "real estate" section of local newspapers and magazines, putting up fliers and the like. Remember that it is against the law to discriminate against anyone applying to become a tenant. You can, however, screen applicants to find out about their credit history, their history for paying rent and to see if they have a criminal background.
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Consider using a property management company to run things for you, if you don't want to be saddled with all of the headaches. Not only can they attend to tenants' needs, but they can hire maintenance, security and grounds people to protect and upkeep the property. You still need to visit the property regularly, though, to find out if everything is working efficiently.
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