A recent study revealed that real estate is now American’s favorite long-term investment. With historically low interest rates, and millennial’s desire to rent instead of own, income properties have quickly become a popular venture. If approached in a business-like way, rental properties can be an excellent investment. Here are some tips to consider when making the decision to become a landlord.
Purchasing an investment property can be rather simple, being a landlord on the other hand requires skills of an accountant, knowledge of a lawyer, and the ability to be firm but carry a friendly disposition. Professionalism is key when self-managing as creating a personal relationship with tenants can lead to issues in the future, if the tenants decide not to pay rent. Also, landlords must familiarize themselves with all state landlord-tenant laws including eviction laws, and fair housing to avoid any legal issues.
As a landlord it is of the upmost importance that there is money set aside in the event of an emergency, as it is better to be prepared than stuck with no money. Not only for emergencies, but as well as general upkeep and maintenance that is need for the property. Failure to plan for unforeseen expenses can become a fast track to disaster.
Renew Your Leases
Some mistakes individual landlords make is failing to renew a tenant’s lease in a timely manner. It is best for landlords to renew leases every year to keep the tenants on the right track. If the landlord allows the tenant to go on a month-to-month lease some issues can occur. On a month-to-month the lease the rent can’t be increased. It also can be harder to evict a tenant.
Rental properties are often great investments for those who know what they are getting into. It is important to remember that it requires a lot of work to keep the income flowing. If you are considering purchasing an investment property you may want to look into property management for assistance. Between the legal advice, screening applicants, handling tenant matters, and the comfort of having professionals on your team it’s no wonder so many landlords entrust Ryntal Property Management with managing their investments.