8 Lessons for a First-Time Landlord
Whether you find yourself an "accidental landlord" or you've purchased a property with the intent of renting it out, there are a few things you should know before you ask your first tenant to sign on the dotted line.
LESSON 1: ALWAYS SCREEN YOUR TENANTS
It is highly recommended that you look into a full credit report and a comprehensive background check.
LESSON 2:KEEP YOUR FINANCES ORGANIZED
Keep duplicate records of your income and expenses. Organize your finances in such a way that your business could easily be turned over to someone else such as a property manager or your spouse, in case of an emergency.
LESSON 3: UNDERSTAND BOTH YOUR'S AND YOUR TENANTS INSURANCE RESPONSIBILITIES
You'll need to convert your homeowners insurance to fire and hazard insurance, otherwise commonly known as rental property insurance. It's also important that you make sure your tenant has renters insurance.
LESSON 4: BE CAREFUL WHEN RENTING TO FAMILY
Even if you have a verbal agreement with family for them to pay rent on a monthly basis, you may find yourself with a couple of problems.
LESSON 5: WATCH OUT FOR LOWBALL OFFERS
A lowball offer typically suggests that the renters pose one of two major issues. One, they may cause undue hassle as they try to bargain and bicker over every item and issue with the home throughout the lease period. Two, it could also suggest that they do not have sufficient funds for rent and may not be able to make timely rental payments.
LESSON 6: KNOW YOUR PRICE POINT
If, based on both your market research and suggested rental amount from a reputable property manager, you believe that your home is priced appropriately, then stick to your price point.
LESSON 7: REQUIRE REGULAR PROPERTY INSPECTIONS
In general, an inspection should occur once a year. However, more frequent, quick inspections can take place throughout the year, as maintenance calls require.
LESSON 8: KNOW YOUR LEGAL RIGHTS...AND YOUR TENANT'S.
Pristine Property Management, LLC
9480 NE 2nd Ave #128
Miami Shores FL, 33138
Source: Karina Gafford/Military By Owner.