Whether you are thinking about buying an investment property to rent it out and build wealth over time or to help cover your mortgage, it might be one of the most exciting moves you might ever make, but also one of the most terrifying.
This article will give insight into some of the many things you should know before becoming a landlord in Miami. Here are some important things any investor should keep in mind.
1. Being a landlord is a business endeavor
You can make good money by buying an investment property in Miami and renting it out, through both monthly cash flow and appreciation on your property, however, you need to be ready to handle the types of struggles you would face with any business.
There will also be money going out to get the income you desire, and the money spent will be from your pocket. There are taxes you need to pay on the property and insurance you need to get as a landlord. You also need to consider costs of renovation before you rent out the property.
2. Purchasing the right property
It is crucial to carefully consider the type of property you purchase with the intention of renting it out. Location is among the most important factors to consider. Look for a neighborhood with a good school district, near parks, malls, restaurants, among other amenities.
If you have the opportunity, investing in duplexes is always a good idea for the peace of mind they bring. A single vacancy is much less threatening to a duplex owner than someone investing in a single unit. You will have two units, so if you go for a while without a tenant, it is usually going to be just one apartment, not both, so you will still have some money coming in each month.
3. Check your insurance coverage
Protect your new investment. Landlord insurance helps cover the building and structures of the property, it usually covers items used to service the rented property, so, while it is not legally required for tenants to purchase insurance, it is important they know and understand that they are not covered by your insurance policy. It is a good practice to recommend they take out their own policy, so their personal possessions are also covered.
4. Stay up to date with Florida regulations
It is very important that you learn all about the landlord/tenant laws and regulations in Florida before you decide to rent out your property.
You should know that a tenant is entitled to the right of private, peaceful possession of dwelling, property must be free of pests, have a working plumbing system, structural components in good conditions, hot water, reasonable security, and, even if there is no written lease agreement, they also have certain responsibilities and rights under Florida law. These are specified in the Florida Statutes, Chapter 83, part II of the Florida Residential Landlord Tenant Act.
According to the Florida Department of Agriculture and Consumer Services (FDACS), all notices to and from a landlord must be in writing and must be either hand-delivered or mailed, even if the rental agreement is oral.
5. Consider hiring a great property manager
If you do not think you will have the time to commit to being on site to make repairs, handle regular maintenance, and even collect rent checks, you should consider hiring a good property manager who can handle all of this for you.
There are so many benefits in hiring a property management company in Miami that will help you add value to your rental property investment by getting high quality tenants, run background checks on them, and much more to save you troubles and money in the future. This way you do not have to live near the property to inspect it or be readily available all the time.
At Pristine Property Management LLC, we can guide you through the process. Do not hesitate to contact us.