| Have you ever thought about renting out your | | | | Make sure that you have enough insurance to cover |
| home? Most people think about this at one time or | | | | your home. Talk to your insurance agent to get the |
| another while they consider buying a new home. | | | | right package for you. |
| When done right, being a landlord is a lucrative | | | | A well-designed insurance package can protect your |
| business that can open the doors to that house you | | | | home from losses caused by everything from fire |
| always dreamed of. It means that you can have | | | | and storms to vandalism, and personal injury and |
| multiple assets that continue to appreciate in value. | | | | discrimination lawsuit. For a small amount of money, |
| Before you take the plunge, let's go through some of | | | | you can protect yourself from the opportunity to |
| the things that you need to know about being a | | | | lose a large amount. |
| successful landlord. If you are not careful, some | | | | Rules for your tenants |
| mistakes may come back and bite you again and | | | | Having a clearly defined set of rules for residents can |
| again. | | | | save you time and money. When you draw up your |
| Tenant Screening | | | | list of rules, make sure the same rules apply to all |
| Not all tenants will be good tenants. All too often | | | | your residents. Don't discriminate based on age or |
| landlords can be too eager to fill their homes. It is | | | | gender. For example, don't just say "children are not |
| important that you do a little investigation on your | | | | allowed in the pool area". You either have to say "no |
| potential tenants. Whether you are managing your | | | | resident or guest is allowed in the pool area" or |
| property yourself, or using an agency, careful | | | | "children under the age of 8 must be accompanied by |
| screening will save you a lot of money and stress. | | | | an adult in the pool area". Using general terms, such |
| There are problem tenants out there, but there are | | | | as "resident" and "guest" will mean that you can't be |
| many ways to prevent them living in your property! | | | | accused of discrimination. |
| Things you can do to make sure you have the right | | | | If a resident does break your rules, then you have |
| tenants: | | | | every right to keep a record of such behavior. Keep |
| - References | | | | written records of the time and date when the |
| - Talk to previous landlords | | | | incident took place and how you found out about the |
| - Talk to the Tenant | | | | incident. Keeping records will mean that it's far easier |
| - Credit check | | | | to evict a residents if there are any problems in the |
| If you are letting an agency handle your affairs, | | | | future. Having rules and guidelines for residents clearly |
| make sure they know that you want a good tenant. | | | | laid out means they know what is expected of them |
| Unfortunately, agencies do not always have your | | | | before they agree to rent from you. Make sure you |
| interests at heart. Their job is to rent out property | | | | look at the laws in your own state before you |
| and sometimes they forget that they have a | | | | finalize your rules. |
| responsibility to the landlord to find good tenants, not | | | | Maintenance and Repairs |
| just any. The key here is to be on top of things. No | | | | Nobody likes having to spend money on repairs, but |
| one will care about your home or income as much as | | | | making repairs within the shortest possible time will |
| you! Note* When screening your tenants, you should | | | | save you money in the long-run. A small problem can |
| be aware of the Fair Housing Act | | | | soon escalate into a big problem if you don't act |
| Understanding your Expenses | | | | quickly. Think of plumbing, if there is a leak and you |
| Most people don't realize that expenses are more | | | | don't fix it quickly, you could end up with damp and |
| than taxes, insurance and mortgage payments. You | | | | other issues. Acting quickly to repair problems will |
| should have money set aside for repairs, vacancies | | | | mean that the rental and sales price of your home |
| and bad debts. These other expenses can be limited | | | | doesn't depreciate. |
| with planning and preparation. | | | | If you don't act quickly you could also find that good |
| You should be realistic with the condition of your | | | | residents will want to leave. They can also sue if |
| property. If something looks like it's not going to last | | | | they suffer any injuries or leave without giving you |
| or will require repairs in the near future, then you | | | | notice. Act as soon as any issues come up so you |
| should sort out these issues before your tenants | | | | won't be left footing the bill and trying to find new |
| move it. You will find this saves you money as you | | | | residents. |
| have the opportunity to either fix some of the | | | | Advertising |
| problems yourself or find a good quote for the | | | | Advertising is one of the most common ways for |
| services. Once your tenants have moved in, your | | | | landlords to find people looking to rent a property. |
| priority would be to solve the problems as quickly as | | | | Advertising can be expensive in traditional |
| possible which means the costs can be increased. | | | | newspapers and magazines, but there is another |
| Always over budget for your expenses. Things | | | | apartment rental service [ company that can help |
| happen that you cannot always foresee. Here are a | | | | you find new residents that are much cheaper. |
| few costs you should consider when renting out your | | | | Potential residents will also be able to see a picture of |
| home. | | | | your home, so you'll spend time showing your home |
| - Gas and electricity testing | | | | to people who are genuinely interested in renting |
| - Insurance | | | | from you. |
| - Letting agency fees | | | | When you advertise your home, make sure you |
| - Tax | | | | describe only the facts about your home, such as, |
| - Repairs | | | | location, transport links, and what is in your home. |
| Communication | | | | Never discriminate on age, race or gender or say |
| Be in contact with your tenants. The best way to | | | | something like, "this home is perfect for young |
| make sure that your tenants pay your rent and treat | | | | couples" as it could be misread that you are |
| your home well is to be in regular contact with them. | | | | discriminating against families or older people. |
| Obviously, you do not need to harass them. If you | | | | Resolve disputes informally |
| haven't heard from them in a few months, then give | | | | If you have problem with residents, there is no need |
| them a check up call. Find out if they are happy and | | | | to be heavy-handed and start calling your lawyers |
| what their plans are for the future. Often, if they | | | | immediately. Try to resolve any problems with an |
| feel that you are looking after their interests, then | | | | informal meeting first. This will help save you money |
| they will look after yours. | | | | on lawyers fees (they get enough money already!). |
| Most tenants have some sort of idea how long they | | | | If an informal meeting doesn't work, then consider |
| want to stay in your property. A good relationship | | | | using a neutral third party to mediate between you |
| with your tenants mean that you can have an idea | | | | and the residents. Only once you have exhausted all |
| of their intentions and plan for it. | | | | possible avenues should you get your lawyers |
| Home Checklist | | | | involved. |
| If you have rented a home before, you would have | | | | Get everything in writing |
| probably come across the checklist and never | | | | Before you agree to anybody renting your house |
| thought twice about it. It is crucial to do a stock | | | | you must get everything in writing. Even if you plan |
| check before a tenant moves in or out. This will help | | | | on renting to friends you need a contract. Without |
| tenants know exactly what condition the apartment | | | | one you'll have less standing in the eyes of the law. |
| is in so that they respect it. Obviously, there will be | | | | Your contract needs to include things like: |
| room for wear and tear, but if it's more than that, | | | | - All the names of the people renting the house |
| you will have the checklist to go back to. | | | | - Rules of when you or the renter must undertake |
| The checklist will be signed by both parties and you | | | | of repairs or maintenance |
| will have proof should the condition of the apartment | | | | - How much notice you are required to give to the |
| be disputed by the tenant when they move out. Tips | | | | renters before you visit them |
| for making a good checklist: | | | | - Deposits and fees payable |
| - Separate your checklist into individual rooms | | | | - Rental amount |
| - Break down each room into sections | | | | - The length of the contract |
| - Create a system of check each room. A good idea | | | | Make sure to get these key details written down and |
| is to start from the floor, then the walls, then the | | | | consult further with your lawyer so you know the |
| ceiling. | | | | rights in your state. |
| - List appliances and their condition | | | | These 10 tips will make the transition into being a |
| This will save you spending money on things which | | | | successful landlord much smoother. Becoming a |
| you shouldn't have to. | | | | landlord isn't difficult as long as you are organized and |
| Insurance | | | | have a plan in place. |
| There are many insurance plans for your property. | | | | |