Becoming a Landlord
Working a full-time job is an honorable way of making a living. Whether you work a 9:00 to 5:00 in the office, maintain a profession, or work in food service, working hard is an admirable feat. You may find that after many years of hard work, you are able to save up enough money in order to get a mortgage on a home. You may then choose to turn this home into a rental property. If you do so, here are four things to know before becoming a landlord in your community.
#4: The Average Rental Cost in Your Area
You can’t simply make up a number for your rent and then charge your tenants. You need to do a lot of legal research before you rent out your unit. You need to know about tenants’ rights and squatter rights. You need to do proper research in order to find out what the unit you have for rent is going for in the area. For example, if you have purchased a one-bedroom apartment to rent out, you will need to do research on how much one-bedroom apartments are going for in your neighborhood.
You can do this research by using websites like Zillow and Craigslist. These will tell you how much a one-bedroom apartment is renting for in the general vicinity that your rental property is located in. You can go anywhere from $100 to $200 over the average cost for rent of that type of unit in your area. See how much you can get for the rental.
#3: The Safety of Your Area
The amount that you are able to charge your tenants will depend largely upon the crime rate in the area that you are renting your unit. You need to do some research online with the local government in order to determine if the area you are renting in is safe.
You need to find out if there are any registered offenders in the area and how many crimes have been registered in the area. You need to be realistic about the rent amount according to whether or not the area you’re renting in is actually safe. If the area you are renting in is not very safe, then you will have to cut down on the rent amount because people will not be willing to pay as much rent.
There are many different websites on the internet that will give you information about the safety of the area you are renting in. You can use government databases in order to get information about recent crime reports that have happened in the area. There are also non-profits that operate online websites telling you about which areas are safe and which are not.
#2: It’s Not Easy
One of the most important things for you to know about being a landlord is that it isn’t easy. It may seem like you just purchase the property and then charge rent, which you then put towards the mortgage. However, it is a much more difficult job than that. First of all, you have to be responsible for maintaining the grounds around the unit. This means you either need to do landscaping work yourself or you need to hire a landscaper to do this on a weekly basis. You need to keep the grass cut.
Additionally, you will have to make various repairs on the unit as they come up. For example, if there are any plumbing issues, you need to either have a budget to hire a plumber or you need to do the fixing yourself. You should probably hire a maintenance person to be responsible on call for any issues that may come up with your rental unit.
#1: It Is Worth It
Running a rental unit may not be easy, but it is 100% worth it. You will find that it is one of the most rewarding endeavors that you can embark upon. Additionally, you will find that operating a rental unit is rewarding because you will be able to afford your tenants the safety and stability of a secure home. You will find that this is very emotionally rewarding. There are few things more important than having a safe place to live. By being a landlord, you will have great satisfaction from knowing that you are providing this for your tenants.