Investing in rental properties and becoming a landlord is a dream for many. Pursuing that dream can be one of the best things that you do for yourself. It can empower you to be your own boss, set your own schedule, and develop a largely passive income. It can even give you a variety of important tax breaks. Whatever your own motivation is for becoming a landlord, you likely won't stay in this role very long if you make the following mistakes.
Renting an Unsafe Home
It's never a good idea to allow tenants to move into a home that needs a little work. In fact, you shouldn't even have potential tenants over to look at your property until all necessary repairs are made to ensure that the home is up to current laws and codes. All homes that are on the market should do more than simply meet the law of habitability, too. They should be safeguarded against all hazards within reason.
The house should have working electricity. Ensure that your rental property will protect the tenants from inclement weather, and the home should have both an air conditioner and a heater that is in good working order. It's very important to do a walk-through and personally check to make sure that the entire property is safe before you let potential tenants look around. If in doubt, talk to a real estate agent like Aksania Reczek - AllStars Realty regarding what you need to do to ensure the safety of your home and tenants.
Trying to Do Everything Yourself
Owning rental properties and acting as a landlord can put a lot of stress on you, and you will be juggling many responsibilities in addition to other work you may do. Some property owners also try to take on the task of finding tenants, but that can be a big mistake because going through hundreds of applications to find the right tenant can become a full-time job.
Instead, the best choice for many property owners is to hire a realtor who can find tenants for you. The real estate agent can assist with everything from placing the rental on the market to tenant screening, which will allow you the freedom to concentrate on other work you need to do to be an effective landlord.
Using Homemade Contracts
As tempting as it may be to try to create your own rental agreement contracts from copies of ones you may be able to access online or from past rentals you've had, it is never a good idea. Your specific needs will vary according to the property you have and the current laws that are in place on a local and national level. Make sure that you have a lawyer who can at least look over any rental contracts to ensure that your best interests are protected.
Finally, keep in mind that investing in your own rental properties and having a successful career as a landlord means that you need to follow laws carefully and look out for the well-being of your tenants. Whether you have one or many rental properties, keep in mind that the safety of all on your property needs to remain the first priority, and hiring help when you need it can help ensure your success.