What Does it Take to be a Landlord in the Area?
Deciding to rent your home out to a tenant is not easy. Most landlords are members of the military who are facing deployment, a homeowner who cannot sell a house and is thinking about renting it out or a real estate investor with lots of experience and an entire portfolio of properties. Whatever type of landlord you are, you need expertise to do it right.
Being a landlord is a fulltime job. You have to be prepared to approach it that way. Here are some of the things required of you:
- Pricing your home at a rent consistent with the market value and avoids long term vacancy
- Marketing your property in the right placesCompliance with all federal, state and housing laws in your advertising
- Screening applicants who are serious about renting your home
- Showing your property at times that are convenient for potential renters
- Stay in contact with prospective tenants after they have viewed the property
- Doing extensive background checks on applicants
- Writing a lease that is legally enforceable
- Collect and handle security deposits, placing them in escrow accounts
- Inspect and document the condition of the property before move in
- Understand and follow all landlord and tenant laws
- Respond to tenant repair requests and maintenance issues 24/7
- Schedule vendors for repair work
- Making payments to vendors for completed work
- Collecting monthly rent payments and chasing down late rent
- Keeping an accounting system of rent, expenses and income
- Handle problem tenants who cause damage or violate the lease or HOA requirements
- Execute evictions when necessary
- Regular inspections to ensure the tenant is taking care of your property and following the lease
- Collecting back rent from former tenants
- Completing a move out inspection
- Return the security deposit to tenants within required number of days
- Get your home ready during the vacancy for the next tenant
- Start from the beginning with a new tenant
You have to ask yourself if being a landlord is worth your time and other resources. You probably have a fulltime job already, and a family that you enjoy spending time with. Do you really want to invest the time and energy it takes to manage property correctly?
