The title and job of a landlord or landlady can be exceptionally demanding and costly, particularly if you have invested in property that has not been well-maintained.
#Rental properties have become exceedingly more popular since the increase in interest rates, and because more people want to rent. Real estate investments are a great way to increase your wealth through property appreciation. If you want to buy rental properties there are a number of things to take into account.
#To rent out property can be very profitable. You are making an income on a monthly basis and have a genuine asset, which is quite different to owning stock, or investments, which you will never be able to see or touch. Real estate is one of the few investments that do extremely well in time of inflation.
#For hundreds of years people have decided to place all their money into real estate. With rapidly increasing prices, high demand, and almost no risk, the obvious benefits speak for themselves.
#Rental real estate can also be purchased with borrowed money. For almost no money down an investor can own and rent residential property such as units, blocks of flats or free standing homes. Also, if your rental properties cost you more than what you receive in income this will assist with taxation. Once there is equity in your residential property for rent, you can apply for a home equity loan and use that money to purchase more property.
#The Risks of Tenants. There are risks associated with rental properties. Firstly, you are liable for any injuries which take place on the property. For instance, if a visitor breaks a leg on a staircase, you may have to pay for it. Not only that, but you may be subject to a court case, where you may be sued for not just the injury, but emotional distress. The insurance is very costly. This is why it is particularly important that all of your properties meet government building and safety regulations and health standards.
#Furthermore, unexpected expenses are not unusual. Electricity repairs, plumbing, attention to roofs and walls, new carpet, heating etc., the list goes on. They are all your responsibility.
#Screen Your Prospective Tenants. Check with their previous landlord. You can even check with the one previous to that, just to have more references. You just want to be sure that your prospective tenants have good and stable employment history and can pay their rent on time. Also, you want to be sure will keep and maintain your property for rent well.
#Visit your prospective tenants' last rental property. This may be going a bit far but if you really want to see for yourself how your future tenants have treated their last house for rent.
#Be a tough landlord/landlady. his doesn't mean you have to be unreasonable. It just means that you should be firm when laying down the rules in your property for rent, and expecting your tenants to abide by them. You and your tenants should discuss early on these rules so that you can clarify and negotiate.
#Lastly, be prepared for tenants from hell. Ninety percent of your tenants will be good people who pay their rent on time, mind their own business and just get on with their lives, but sadly, the other ten percent will make you want to slash your wrists. Just keep your cool. Have good relationships with good tenants, and well, simply discard the ones who give you a hard time.
Amos writes articles and press releases, this piece she made served as an article exclusive for which offers a comprehensive list of office & commercial real estates, homes for rent or sell and an apartment finder to thousands of properties in Australia.