Are You Ready to Be a Landlord?
When it’s time to leave your current address, you have a few different options. One is to contact Kingship Properties to sell your house quickly for a fair price. The other is to maintain ownership and turn it into a profit-making residence. Keep reading for some excellent advice on the latter to help you determine if you’ve got what it takes to be a property manager.
It is not simply enough to want to be a landlord — it also takes time, money, and patience. There are responsibilities like tenant screening, making repairs, collecting rent, and completing 1,000 other duties you may not have considered. While you can certainly hire a management company to do the majority of these tasks, many first-time landlords use this experience to learn the ins and outs.
If you choose to go at it alone, you need to make sure that you can afford any necessary upgrades needed before you list your home as a rental. Your home may need to meet minimum standards for accessibility and safety. You will also need to be ready to foot the bill for damages and cleaning costs between tenants. Carpet cleaning is one example, and while this typically only costs up to $75 per room according to HomeAdvisor, it’s just one of many things you’ll pay for that can add up quickly. Before you pay for this service, make sure your cleaner is steaming instead of shampooing, as the latter can damage carpet fibers.
You’ll also want to make a point to look at the local rental market. Start by checking other rentals for vacancy rates. Duplexes, apartments, and single-family homes up for rent can give you an idea of whether or not it’s feasible to keep your house full and your profits flowing.
Prepped and ready
One significant concern among new landlords is how to keep themselves and their future tenants safe during a global pandemic. Your first step is to clean and sanitize the rental. BiggerPockets also suggests scheduling virtual showings. The financial education website further recommends utilizing technology to prepare for a remote closing. Closing a rental is usually much quicker than a real estate sale, and you can speed up the entire process by ensuring that you have the ability to collect money online and that your tenants have already passed a background check.
Landlord laws to keep in mind
Once you start collecting rent, you become a landlord. This means that you are now subject to local, state, and federal laws to protect you as well as your long-term guests. While state regulations vary, you will definitely have to remain in compliance with discrimination laws, including those enacted by the Fair Housing Act. Your lease document must also be outlined clearly and concisely.
As a landlord, you will be responsible for providing a safe environment and disclosing any potential issues with the property. If you choose to take security deposits, you should know that it’s best to keep those in escrow to cover things like late payments or damage upon move-out that your previous tenant refused to fix.
Turning your current family home into a rental/income property is a smart idea for recurrent revenue. However, there are many considerations that can’t be ignored. Don’t make the decision lightly, and remember, if you find that you simply can’t do it all, a rental agency can. Your rental partner will also be fully versed in the letter of the law and can take the burden of tenant communication off your shoulders.
Are you interested in selling your house quickly? Contact Kingship Properties to get it done in three easy steps: Provide details, get an offer, and get paid.