Tips for Landlords
There are several reasons you may be a first-time landlord. For example, if you have purchased a larger home but aren’t ready to sell your first one, or if you are an investor who has stumbled upon a great deal on an income-generating property. Regardless of your situation, if you are a first-time landlord, there is more to this position than just signing contracts and collecting rent money.
While it is a good idea to consult with an attorney to provide advice on your new rental property, there are also a few general tips that can help you get started with this new endeavor.
Create a Timeline
You may be lucky and capitalize on a fantastic purchase deal that generates monthly rental income above the cost of the building – but that’s usually not the case. Renting out an apartment or home can pay off in the long run – about 30 years from now when the mortgage is paid – but you should never count on the rental income for a particular bill or purpose. Generating profit from your rental property is a marathon – not a sprint.
Crunch the Numbers
You have to purchase insurance for your rental property. Uncle Sam is going to expect his money. A landlord attorney in Florida can provide you with advice regarding the legal requirements for the state. They can also be helpful if an issue arises with a tenant down the road. You are also going to be responsible for fixing anything that breaks, and you need to make sure to factor this in.
In a perfect world, you can set the rent high enough to cover all these expenses; however, you need to budget for the expenditures to know for sure how much rent is necessary for upkeep. In the beginning, this may not leave much profit. Understanding this ahead of time is imperative.
Make a Checklist
Do you know what you need to do before a new tenant moves in the rental? In most cases, this includes things like inspecting appliances and different components and systems in the home. If you are unsure of what is required by law, consult with an attorney. They can help you create a checklist to ensure all the essentials are handled.
Gather the Proper Forms
There are thousands of sample contracts online. The more you can detail in the beginning, the smoother your rental is going to go. Make sure you spell out everything in the contract you finally create. This ensures that your tenant knows what to expect in every scenario that may arise.
You should never rent to relatives. This is a fast way to tank any relationship. However, acquaintances, such as work colleagues, are often quality renters. Keep this in mind when choosing a tenant for your rental property.
When it comes to owning rental properties, there is much more to it than meets the eye. Knowing the ins and outs can help ensure you don’t run into any serious issues as a landlord. To learn more about being a landlord in Florida and to have your questions answered, contact HLF Real Estate Law today.