Tips for Potential Landlords, Residential and Commercial Property Owners. lapmg.com
Many people dream to be rental property owners. Rental property can be a great venture, but it can also be a disaster if you have insufficient knowledge regarding the process. To help you out, we have made a guide which takes you through the process and talks about key issues regarding rental property investment in the San Fernando Valley.
- Pick the Right Properties
You can be successful in real estate investment by acquiring smart investment properties that will attract the best tenants. You can pick Multi-family units because they can get managed easily. You can also choose single-family homes because it attracts stable renters. For more knowledge, you should look for a real estate professional who can help you look through a neighborhood data, look for the best properties and help you value the return on possible investment.
- Get a better knowledge of Landlord-Tenant Law
Ensure you study landlord-tenant law in your state. The law covers issues like security deposits, notice, procedures of eviction and maintenance. Moreover, ensure you familiarize yourself with state and federal fair housing rules for the landlords. Ensure you come up with a documented and fair process of dealing with tenants. Establishing a documented and fair procedure ensure that you won’t get accused of discriminating on the basis of color, race, disability, familial status, sex, national origin, religion, or any other state protected status.
- Know your tenants
Possible tenants should provide copies of their credit reports. Moreover, it is advisable to search state court databases to look for charges that have been brought against the potential tenants. You can also look for fee-based local services to do the screening of your potential tenant.
- Document everything on papers
Every tenant needs to have a complete application with contact information, nearest relative, references, and employers. You need to have a signed agreement with the tenant that entails all the lease terms. Most landlords prefer monthly arrangements so that giving notices can be easier compared to periodic lease.
During occupancy, ensure a written property inventory is completed. The inventory should have a list of appliances and any removable items, and also notes about the walls, doors, floors and windows condition. It is advisable to have your attorney who will review all the forms that you are planning to use.
- Be good but also firm with your tenants
Having good tenants in your rental properties lessens problems. Ensure regular maintenance get performed on your property to keep it in good condition. Concerns and complaints from tenants should get a response in a fair and timely manner.
When a problem initiated by a tenant arises, talk to the renters about the legal consequences that their actions can cause. A good example is when the tenants delay to pay the rent, remind them of the delay and give them a deadline for the payment, in which you will give them eviction notice according to the state regulation.
- Contingency plan
Rental property requires your involvement compared to other business ventures. When acquiring properties, ensure you have enough money and time that is set aside to deal with possible issues like damage, vacancies, and maintenance. Sometimes you may have to reserve up to 25 percent of your rent to deal with such issues depending on the rate of vacancies in your region.
- Get facts about rental properties
Never manage your rental properties depending on information from sources that are uninformed. There is a lot of misinformation out there, especially in rental property investments. Technically landlords cannot evict tenants without following the legal process. Legal processes are only carried out by appropriate authorities.
- Safeguard your Interests
You should consider having umbrella insurance to cover the damages caused by lawsuits filed by tenants.
Sometimes life circumstances can force property-owners out of the market. A well-maintained property can show a good flow of cash and also can be sold at a good price even the time that the market is Sluggish.
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