There are a lot of people who are ready to rent out their properties and make a living off what they already own, but before you sign up to be a property owner, you might want to think about what it really entails. Unfortunately, there is a lot of responsibility you have to take on just to rent out a property — even if you’re just renting out a basement. So, before you start making rental ads, make sure you’re ready to handle it all.
Do You Know the Rental Rates?
Rental rates will determine how much you can rent your property for. If you don’t have a market value that appeals to renters, you will have a property that sits vacant for some time. That means you need to be willing to keep up to date with the latest market research.
Are You Going to Get Help?
If you have a family and a full-time job already, you won’t have time to manage a property too. So, that means you need to find a property manager that can help collect rent, deal with tenants, etc. You will have to pay these companies a fee, which means you’ll need to research and meet with multiple companies to find which one suits your budget and needs.
Do You Know the Landlord Tenant Laws for Your State?
Every state has their own laws regarding the property owner and tenant relationship. IF you don’t know them, you could find yourself fined or worse, sued in court. Make sure you look up the laws regarding your state from your local housing authority. These laws dictate how you treat your renters, the rental contracts you can offer them, etc.
What Will You Do If the Renter Doesn’t Pay?
Don’t just assume every tenant you ever have will always pay their rent. While things happen, you have to be prepared for when a tenant leaves or skips out on the bill. How will you manage unpaid rent? Can you afford the property even if you are out of rental money?
How Will You Handle Maintenance?
It is your responsibility as the property owner to maintain the property and keep it safe. If you are not the DIY type, then you will need to figure out how you can keep your properties in working order. That might be something your management company can do for you or you may have to hire another company to do routine maintenance, inspections and repairs.