Things You Should Know as a Landlord

May 22, 2013 by

Things You Should Know as a Landlord

Becoming a good and successful landlord surely does not happen overnight as it is a process which needs a lot of planning and understanding. This is why, before you jump into this business, you need to consider your options carefully and choose what is best for you and your situation.

Also, one important thing that you need to know as a landlord is that this is the kind of income which will require a lot of hard work from you. This is so because as a landlord, you will not only have to deal with damages and fixtures, but bad tenants as well. However, even though this business is not for the faint hearted, the fact is that if you choose the right house in the right area, this means of income can be quite lucrative.

Today, I am going to be talking about the first phase of this business and that is the understanding. In the following paragraphs, we are going to be talking about some of the things that you must know if you are planning to be a landlord soon. Implement these in your plan and make sure that you have done your research before you sign any legal document. Below are some things you should know as a landlord.

Do you have what it takes?

Before you make a final decision, it is mandatory that you weigh everything and know whether or not you are capable of becoming a landlord. As mentioned, this business is not easy and so it will require a lot of your time. This is why, if you already have a 9-5 job, it is recommended that you stay very far away from this business. Also, if you are to be a landlord, you should probably learn how to be a jack of all trades or spend a lot on paying people to fix things. Moreover, always remember that as a landlord, you should also have someone as a backup in cases of emergencies etc.

Are you good at math?

As a landlord, you must be aware of the fact that a bigger property doesn’t always mean an increased return. Why so? Well this is because the potential return that you are going to be receiving is going to depend on a lot of factors like the location etc.

For instance, even though you think that that bigger apartment will win you more bread and butter, the fact is that if it requires a lot of work and fixes, it won’t be worth it. On the other hand, if you have a smaller property or apartment which doesn’t need a lot of prior fixing, your return value will be a lot greater.

Do you have Good Understanding of Tax Issues?

One of the biggest reasons why more and more people are now turning their heads towards this particular business is because you will find great tax breaks. For example, as a landlord, it will be a lot easier for you to claim your mortgage again the rental income. Moreover, coming into this line of work will mean that the insurance and other such cleaning and gardening services will be balanced against the tax.

Do You Know the Right Properties?

The reason why a lot of amateur landlords fail is because they can’t seem to find the right property and so, they either end up with no tenants at all, or have to set a very low price to the property. So, if you want to be successful, you have to ensure that you are setting up in the right area. Some of the properties of a good rented apartment are listed below.

  • Should be safe
  • Should be near work places, schools and hospitals
  • Should have a terrace
  • Should be moderately populated

Once you have asked and answered yourself the above given answers, it is time for you to start your search for the right property.

read more

Related Posts

Tags

Share This

Selecting the Right Apartment for Your Needs

May 15, 2013 by

Selecting the Right Apartment for Your Needs

The apartment that your friend lives in is not necessarily also the right apartment for you. The reason for this is because while your friend needs a simple neighborhood and apartment to live in, you might require extra amenities that may not come with the property that your friend has. The tips given below will guide you in selecting the right apartment for your needs.

Size:

The very first factor that you will need to decide is the size of the apartment or property that you are renting. Also, along with the overall size, you also have to decide the number of rooms that you need as you will find that some apartments may be big in size but do not have a lot of rooms. The size and number of rooms that you are opting for will depend on whether or not you have a family.

Location:

While your friend may need a peaceful and quite area which is away from noise, you may want something a little closer to your work place or school. Ideally, if you have a family, the apartment needs to be near a school, hospital and park etc. Also, when deciding on the location, make sure that the area is safe and secure as this is the first concern. Moreover, if you are opting for a rented apartment, consider the floor that it is on.

Price:

You cannot wish to rent an apartment unless and until you have a proper budget set. Remember that every month, you will not only be required to pay the rent but also the bills and other such utility costs. So, when deciding on the budget, don’t go overboard just because you have the extra cash right now because you will need the same amount later as well.

Pets:

If you are a pet lover and have one or more pets with you, you need to find an apartment that allows pets. Even though there are lots of landlords that don’t allow pets, there are some who do, but charge a hefty price for it. So, before you sign any sort of agreement, make sure you know the rules and regulations about the pets to keep.

Amenities:

If you are moving in to an apartment in a hurry or don’t have the time to shop for furniture, you will probably be looking for a furnished apartment that has the necessary amenities. So, prior to starting your search, decide if you need a dishwasher, washing machine, and furniture etc.

Parking:

Another concern that many tenants have these days is that of the parking that is available to them. If you have a car then the parking area becomes an immediate issue and thus, you have to know what sort of parking options you have.

Smoking:

You will find that almost all landlords do not allow smoking inside property anymore and so if you are a smoker, you need to know the rules.

Lease length:

When you like a certain apartment, you need to ask the landlord about the length of the lease. This is important because if you don’t know the lease time and move out after it expires, you will be breaking the lease which can subject you to a law suit.

There are a lot of other factors that you need to consider before deciding on a particular rented property and you can easily find them on the internet with a little bit of research.

 

read more

Related Posts

Tags

Share This

Crucial Factors to Remember for Landlords

May 8, 2013 by

Crucial Factors to Remember for Landlords

Although it might seem like being a landlord is as easy as a pie, the truth couldn’t be further away from this myth. If you are someone who has a few rental properties, then you must of course be thinking of letting them so that you can earn your bread and butter. However, before you venture on this journey, let me tell you that to be a successful landlord, there are Crucial Factors to Remember for Landlords.

Even though there is a very large and extensive list of things that a landlord ought to bear in mind, I will be talking about some that are most needed and crucial. So, without further delay, read the pointers given below and start to implement them in your renting plan right now.

1.     Don’t Set the Price too High or Too Low

When you are putting up a rental property on the market, the most important point that you need to keep in mind is to set the right rent. Remember that the rent of the property will depend on several factors such as the overall square footages and rooms, the location, the amenities that you are providing, along with the standard rates for renting in the vicinity.

2.     Do Screen Tenants

As a landlord, it is extremely vital for you to screen tenants and at least run a basic background check on them to make sure that they are going to keep their end of the deal. People may seem and talk very nicely when they come in to rent an apartment but as a landlord, you need to ensure that the people you are letting in are reliable. Running credit history checks or asking for references will tell you if the person can hold up a constant job to pay the rent every month.

3.     Don’t Leave the Problems to Grow

As mentioned, becoming a good landlord isn’t a piece of cake and so you have to expect a few problems here and there. Whether these problems are in the form of tenants or repairs, you have to take care of them immediately, before they turn into even bigger issues.

If you are having problems with the tenants and can’t seem to handle the situation on your own, bring in a letting agent who will know best. If your tenants are complaining on a problem, call someone who can take care of it, otherwise the tenants can and will take legal action against you.

4.     Do get it in Writing

When it comes to putting any property on rent, the one thing that you must remember at all times is to get in writing. Do not; under any circumstances depend on the word of mouth. The contract that is being signed needs to have the month-month rental agreement that has been decided, along with any claims for repairs and problems. If you don’t know how to formulate a lease or agreement, look through the internet and you are bound to find the renting laws that are applied in the area.

5.     Don’t Be Overly Friendly

Amateur or new landlords often do not know or understand that being overly friendly can cause a lot of problems for them in the long run. You have to know that if you do not keep the relationship between yourself and your tenant strictly professional, it can affect more than one area. For instance, if the tenants feel that you are too easy, they can start to skip on the rent and perhaps even do damage to your property.

read more

Related Posts

Tags

Share This

Things to Consider When Renting an Apartment

May 1, 2013 by

Things to Consider When Renting an Apartment

If you are someone who is hunting for an apartment this year, you should know that the decision needs to be made carefully otherwise you might end up with a bad apartment that has a terrible landlord. Now even though there are a lot of things that you should think about before actually deciding on a particular apartment, there are some things to consider when renting an apartment. Some of these crucial points are mentioned below. Remember that the best thing that you could do is to decide on these things prior to the apartment search so that you are clear about what you need.

  1. The Size: The very first thing that you need to ask yourself is about the size of the apartment that you want. The number of rooms or space that is needed will depend on whether or not you have a family with children. Individuals such as college students etc can save a lot of money by sharing bedrooms and splitting the total rent. Also, other than the size of the bedrooms or living rooms, you will also need to consider is the size of the bathroom.
  2. The Price: A factor that you are without a doubt aware of is the cost or price of the apartment. Decide on the budget that you have (the standard is that the rent should be not more than 30% of your monthly income), and then start looking for an apartment. Also, it is crucial that you ask around in the vicinity so that you can know what the normal rent is.
  3. The Location: Amongst others, one of the most vital things that you need to consider very carefully is the area in which the apartment is located. Ensure that the apartment is easy to get in and out. Ask yourself if your work is close or if you have to walk a long while to reach the nearest grocery store. Also, it is crucial that the apartment be in a place which is safe and secure. Other factors such as the light and sound that come in also have to be considered when you are renting an apartment. Experts suggest that you if you want to get the proper feel of an area, you need to visit it in the morning or evening time as this is when you will discover the true nature.
  4. The Utilities: Once you have decided on the factors mentioned above, it’s time for you to think about the utilities that you will need. Also, ask the landlords how much the utilities will cost and if the apartment has been properly equipped with gas heat etc.
  5. The Parking:  Even though this might not seem like an option to think about at first, the truth is that you will find hundreds of people who regret the decision of renting the apartment simply because of the parking. Ask around the neighborhood and find out where you can park, if you need a special permit etc.
  6. The Landlord: Last, but certainly not the least, you have to ensure that your landlord is trustworthy and reliable. The landlord of the building will be responsible for the maintenance and so, there should be specific timings in which the landlord can enter your house. Make sure that everything is mentioned in the contract or agreement as this will make you feel comfortable later.

So, now that you have listed down all the things that are required, it’s time for you to head on out and look for the apartment of your dreams.

read more

Related Posts

Tags

Share This

Tips for Deciding on the Right Rent

Apr 24, 2013 by

Tips for Deciding on the Right Rent

As a landlord, the ideal rent for you would be an amount which would help you make most money. However, in today’s world of declining economy, recession and competitive real state, you find that tenants are free to choose from a variety of properties, and so, you have to decide on how to set the right rent accordingly.

Therefore, your objective, would be to set the rent high enough to gain some profit out of it, and low enough to attract potential customers. If you are a new landlord and don’t know a lot about the rent price that you should set up, then the following points will help you greatly in this area. So, read on and find out more about the tips for deciding on the right rent.

 

Tip 1: Set the Rent According to the Unit

Perhaps the most common mistake that a lot of new landlords make is to set a standard price for all apartments or properties that have the same number of rooms. You have to know that unless and until each of your apartments isn’t exactly like the other, this is a practice that will badly hurt your earning. For instance, lets say you have two apartments which have the same number of rooms in them. Now in this case, you have to note that the square footage of each of the rooms maybe different from one another and so, the tenants will always choose the one which has bigger rooms.

Also, even if the two apartments have similar square footage, you need to remember that things like the view, appliances, access to a garage, and layout are components that need to be considered.

Tip 2: Set the Rent According to the Competition

As mentioned, there is a lot of competition in the real estate market these days and so, it is crucial for you to thoroughly check out the rents of the area where you plan to set up. Go through newspapers, talk to a few people and keep doing this for at least a couple of weeks to know what the rent is like. Also, be sure to keep an eye on apartments that seem to be getting rented quickly as these will be the ones which have the best rent.

Tip 3: Set the Rent According to Tenants

If you have already set up an apartment for rent and tenants don’t seem to be coming to take a look, you may want to blame the rent. However, here, you have to know that it is not always the high rent that repels tenants but a low one as well. How so? This is so because if you have a low rent, people may start to think that you are either running a scam, the apartment is nasty, or there is something else going on, simply because the rent is so low.

Tip 4: Set the Rent According to the Market Demand

If you have been in the real estate for even a little while, you know that the prices are highly fluctuating. This is why, as a landlord, you cannot set one rent price and not have to change it every so often. You have to remember that you must constantly take a look at the market prices and set the rent accordingly.

So you see, setting up the right rent for your property is not an easy task at all, but can nevertheless be done if the right amount and type of effort is put in. If you find these tips to be helpful, follow us so you will be alerted as future articles get posted.

 

 

read more

Related Posts

Tags

Share This

Pros and Cons of Renting a Property

Apr 18, 2013 by

Pros and Cons of Renting a Property

 

Every one of us has asked ourselves the question of ‘should I buy or rent a property’, at least once in our life. Now the answer to this question is simple as at the end of it all, it depends on the kind of financial circumstances you have, along with the housing options that are available to you. There are Pros and Cons of renting a property.

Now for most of us who have average jobs, we prefer to live in a rented property as this is the one option which seems to be the cheapest. Until 2008, everyone living in America believed that it was better to own a property as compared to renting but this concept has changed completely in the last few years. The truth is that when the U.S economy crashed in 2008, people realized that the ultimate American dream of owning a house was unrealistic and that it is in fact a lot better to live in a rented house or apartment.

This is the reason why, today, we are going to be talking about the pros and cons of renting a property and then decide if it is an option you should adopt. The elements mentioned below are those which are most important when it comes to renting a property, and so they cannot be overlooked. So, without further delay, lets delve into the discussion of whether renting a home is a good or bad decision.

Pros of Renting

1.     Rent because there are No Down-Payments

Perhaps the biggest benefit of renting a property is that you are not required to come up with the hefty amount for the down payment which is needed when buying a house. Depending on the landlord and the agreement that you have signed on, you will either be required to pay the advance rent for 2-3 months, or asked to pay the first and last month’s rent, along with the security deposit.

2.     Rent because it is Your Chance to Invest the Money Somewhere Else

When you don’t have to spend anything for the down payment or extra costs, you save money, which can be invested into something else. You can invest the saved money in the stock market and get a return value that makes you proud and happy about the decision that you have made.

3.     Rent because you are Uncertain about Your Career

If you are not sure when you are going to have to move for the purpose of your job, then renting is surely the best option that you should go for. This is so because if your job demands that you move to different places inside or outside the country, then renting will provide you with the flexibility and freedom that is needed.

4.     Rent because you are Uncertain about Your Income

You will find that there are thousands of people in the house renting community who are doing so only because they are not sure when their pay scale is going to increase or decrease. So, if you are unsure about the income that is going to be coming to you each month, renting a property would be a better option as you wouldn’t need to pay a mortgage.

5.     Rent because all the Maintenance will be taken care of

One of the biggest benefits of renting is that you get the opportunity to get the maintenance taken care of without having to pay a dime for it. Whether it is a pipe leak under your kitchen sink or problems with your electric circuit, everything will be handled by the landlord and therefore, you will be saving a considerable amount here as well.

Cons of Renting

  1. One of the reasons why people end up regretting their decision of renting a property is because the prices are often fluctuating and you do not have a control over it.
  2. Another major setback in renting an apartment is that your decor options are mostly very limited and so you cannot set your home as you wanted to.
  3. If you have a landlord who is not patient and friendly, you will be subject to his decisions which might not always be in your favour.
read more

Related Posts

Tags

Share This