Though minimizing the disadvantages of owning rental
property is simple, following a few guidelines will help you eliminate some the
downfalls. First, keep your expectations
reasonable; don’t set your goals to high in the beginning. You don’t want to increase the rent on a good
resident, only to scare them into moving, so that you can take that tropical
vacation sooner than expected. You have
to use smart thinking, and take into consideration all the aspects. Yes a higher rent amount per month does sound
exciting, but if you raise it too much, you can scare off the good and be stuck
with the bad. If you scare off a good
resident, then you are looking at facing turn around cost; the cost that is
incurred and put into getting the home rent ready again for the new
person. Not only do you incur these turn
around costs, but you’ve also lost rental income. Remember that free money you didn’t have to
work for in the beginning? It’s now
gone, and you’re left with shelling out of personal pocket expenses for repairs
and maintenance, to make the home presentable and appealing to the next
resident.
Know the Rules of managing rental property. Federal and State laws outline your
responsibility as a landlord. As a
certified property manager, I personally suggest researching your applicable
states Landlord/Tenant Act, as well as keeping on hand the Fair Housing Laws
and Guidelines, set forth by the Government.
This not only protects you, but protects your investment as well.
Make sure you have a Written Lease Agreement, and that it’s
LEGAL. If you make a mistake on a lease
or have the wrong lease, you will find in most cases that it’s more difficult
to litigate if the resident violates any terms. If you make a mistake when preparing
a lease or at lease signing, do not “white out” the mistake or “strike thru”
the mistake by doing so you are only causing hardship on yourself should you
ever have to litigate due to non payment of rent, or violation of the lease. To safeguard that the resident has read and
understood everything read, have then initial the bottom of each page,
indication they have read and understood the lease. By doing so there can be no ignorance claimed
for knowledge, or for that matter “lack of.”