How to Become a Landlord in Virginia

The process of becoming a landlord in Virginia is simple: find a property, buy it and rent it out. Becoming a landlord may seem simple, but it certainly is not easy! There are many things to consider along the way, including tax laws, real estate laws and tenant rights.

Things You'll Need

• Local real estate information and trends
• Bank loan
• Knowledge of landlord and tenant rights
• Furniture (optional)

Instructions

1. Decide where you want to own property. You need to check out the real estate market in the area of Virginia where you want to purchase property to rent. If you can, find an area that shows excellent growth on investment, or where the rent will cover all costs. You will need to figure out the start-up costs involved, including mortgage payments, agent's fees and taxes. Subtract the expected rental income, allowing for a 5% or so vacancy rate, and determine your shortfall, if there is one. This will depend on the area in which you live. Real estate in Virginia varies widely.

2. Buy the right type of property! The people who are going to be your tenants are probably either saving up for a mortgage, or just do not qualify for one yet. They will probably be middle-class commuters. You will need to buy property in an area where rental demand is high but prices are moderate; probably not an area like Virginia Beach or Richmond, unless you have lots of money to spend! In general, you are looking for property in a middle class suburb near a bus line. Alternately, you could consider renting to college students in Charlottesville, if you are up to the challenge!

3. Consider the inside of the apartment. Will you furnish it? If you are renting to college students, this might be a good idea. Buy nice, but not too nice, furniture that will appeal to the widest variety of people. Also consider registering the utilities in your name and charging the tenant monthly. This will safeguard you in the case of unpaid bills.

4. Find out what the duties of the landlord are in your area of Virginia. Ask the local real estate agent or chamber of commerce if you have to disclose items such as lead paint, or if you need to make sure there are smoke detectors in every room. Each county might have different regulations, although Virginia does have general guidelines outlined in the "Virginia Residential Landlord and Tenant Act".

5. Prepare to be responsible. When you become a landlord you are responsible for the comfort of your renters, or customers. If you provide for them and attend to complaints as soon as possible, your reputation (and properties) will flourish.

Tips & Warnings

• Remember that your personal taste has nothing to do with the property you rent out! You will not be living there. Just make sure it is clean and in good condition!

• Be sure to screen your prospective tenants carefully! A background check and credit check may take time and money, but it is worth it in the long run to have tenants you trust.