ARE YOU READY TO BE A LANDLORD?
Handle security deposits properly
Having a system in place and in writing will help avoid disputes over security deposits when the tenant move out. Establish a pictorial timeline and store photos in a shared file. Take photos at move in , periodic property visits and move out inspection. Make sure you are aware of state specific laws and information about handling, returning and collecting security deposits.
Paper Trail
Make sure that you have a contract in writing. Even if your tenant is month to month, a written contract is best practice. Reference the important facts of your relationship with your tenant-including how you will handle maintenance requests, complaints, rental payments and lease term.
Maintenance
Keep up with maintenance and home repairs. If you want to attract and maintain good tenants, respond quickly to maintenance requests. Check your state tenant landlord laws regarding maintenance. Tenants may have an option to "repair and deduct" in your state. Make sure your maintenance policy outlined in your lease is in agreement with state lawsDisclose Landlords are required to disclose any defects or environmental hazards in the rental home. Landlord's may be held liable to tenant health problems resulting from toxins such as mold and lead.
Quality Tenants
Anyone can find a tenant but finding a quality tenant takes a bit more effort and skill. Credit history and background checks are important. Contact previous landlords for rental payment history and to confirm they left their former rental in good condition. Employment verification and income verification will confirm that tenant has steady income. If your tenant is relocating, require an employment offer letter and then contact employer to confirm authenticity.
Intent to enter
Yes,it is your home but that does not give landlords permission to enter, walk the grounds or disturb the tenant anytime they wish. Understand the state laws for tenant's right to quiet enjoyment of property. Tenants have right to privacy and most states will require 24h our notice, in writing prior to entering the property.
Face Time Required
to resolve disputes. Today's automated online society it is easy to lose the personal experience. Meet in person to discuss conflicts and resolve. If the problem escalates, consider mediation by a third party before threats of lawyers and lawsuits.
Do It Yourself or NOT.
Property Management seems simple enough, right? You may want to consider hiring a professional management team that understands the tenant landlord laws in your state. Hiring a real estate agent may not be the solution. Landlord-tenant laws are state specific and are very different than Real Estate in general. If your manager commits a crime or is incompetent, you may be held financially responsible. If possible meet them in person at their office location. Meet the entire team and understand the managers duties.
Insurance
Understand the what type of coverage is needed for the property , tenant injuries and landlord liability. Consider a mandatory policy that your tenant obtain renters insurance as well. Landlord insurance can protect you from lawsuits from losses to your rental property caused by everything from fire, storm and vandalism. Consult with your tax adviser on the benefits of owning a rental home.