Success as a new landlord, is having a profitable new venture. This is of utmost importance. This is a great step towards taking charge of your financial future. The goal of this blog is for you to do it without any hiccups or minimal ones if any.
#1: For Your Success, Make Sure You Know The Law
Know the implications of renting a property. There are both federal and state laws that you must be aware of to help you make decisions about being a landlord. Buying a property you live in is different than buying a property to rent.
For example, you must know the in’s and out’s of discrimination law when it comes to picking the tenants that will be occupying your property. State laws will guide you on eviction processes and late fees so make sure you contact either a property management company or understand the law before drafting your tenant agreements.
Rental property law involves all law surrounding landlord and tenants, rent, evictions, disputes, agreements, etc.
Ensure you have the right permits in place and that your insurance terms are amended correctly. Investigate electrical circuitry, air conditioning and plumbing to ensure there are no negligence claims against you.
#2 For Financial Success, Calculate Rental Dues Carefully
It can be tempting to look at existing properties to determine your rental amount but that should not be your only deciding factor.
Look at your costs, including loan repayment, deductions on your taxes, maintenance savings and insurance costs. Your CPA can also help you look at the capitalization rate of return.
Make sure you are making an informed decision about rental rates so that you don’t have any unplanned financial surprises down the road.
#3 For Relational Success, Screen Tenants Thoroughly
People will surprise you even when you don’t think they could. Bad tenants can be costlier than a vacant property. It is important to remember that you are looking for the right tenant not just someone living in your place.
It is vital to treat each potential tenant in the same way. Use the same checks so that you can make your choice without discrimination. To keep things easiest on you, start with a phone screen where you state your basic requirements. From there an application can be filled out online so that you can check their criminal, credit check and references.
Having a documented process to follow will save you a ton of time in the long run.
Remember you can do this yourself but if you’d like a professional who makes this their livelihood to help you, Picket Fence Properties would love to help.
Next week, we’ll give you a few more success tips.
Helping you keep your house a home,
Picket Fence Properties, located in Windsor, CO is Northern Colorado’s Top Notch Property Management company helping owners with their rentals, income/investment properties and vacancies in Northern Colorado. Are you a owner of a home for rent or that you’d like us to manage? We help you have the perfect tenants in NoCO. Are you looking for somewhere to rent in Greeley, Loveland, Fort Collins, Wellington, Eaton, Evans, Windsor, Frederick, Firestone? Look no further, we have all your real estate and rental needs covered. Check out website for vacancies today.