In our earlier blog, we talked about buying a house to use as a rental. As there is still so much to discuss on the topic, we wanted to continue the theme.
After you have purchased your rental property, you will need to start deciding how much to charge for rent. Something you may want to think about is that if you decide to charge market value or higher, you may have a better initial return on your investment, but you could also end up with a higher turnover of tenants or someone irresponsible financially. On the other hand, if you decide to charge less, you will receive more interest in the property and have a wider range of tenants to choose from. You may also find that the tenant stays longer.
Before anyone moves into the home, make sure it conforms with your local city requirements. The rental property must meet certain standards to keep its occupants safe. As the landlord, you could get into trouble by not adhering to these standards.
Put aside money every month towards unexpected repairs and expenses to do with your rental property. This way, when there is a problem, you will have the funds ready.
Always think of the welfare of your tenants. Before a tenant moves in, give it a fresh coat of paint and a thorough cleaning.
Not everyone can be a successful landlord. It needs someone who is calm and acts maturely in stressful situations. Also, someone who can make tough decisions without letting emotions get in the way. Before starting this endeavor, it is good to ask yourself if you are really ready to be a landlord.