If you're about to enter real estate investing and you've read materials about it, I'm sure you've heard about renting out your property as the best option to continuously receive monthly residual income. But what about other concerns when you rent out your property? Get to know them by taking some time to read this article.
The most crucial aspect you need to monitor closely is your rent price. Consider the costs involved in renting out your property such as your mortgage payment, property tax, insurance, and the cost of maintenance. If you are to profit from the rent, your rent price needs to cover all these expenses. In fact, you need to factor in other miscellaneous cost such as maintaining the lawn because most tenants would not pay for this.
If you're a newcomer to this kind of business, perhaps you want to ask how you can determine the correct rent price. This task is left to your own discretion. However, consider the following when you're trying to determine how much will you rent out your property.
The number one consideration is the demand for rental properties. If there's a high rental property demand in the area, you can demand a higher price for your property too. This is true when your property is near business establishment or near downtown. Base your price on the overall soundness of your property too. Renters are willing to pay higher price in exchange for safety.
Before you rent out your property, be sure that it has been recently inspected by health and safety inspectors. They give out certificate or signed document as a proof that your property pass health and safety standards and you can show this to your tenant to demand higher price. You also need this certificate as evidence that your property is habitable in case your tenants comes up with a silly law suit claiming that they've developed crazy diseases while living in your house.
Don't let yourself to remain ignorant about your rights and obligations as a landlord. Your tenants have all the rights to sue you for negligence if you're not doing your obligations as a landlord. And you can be sued from as little a cause as a shaky stairs or a basement infested by molds. Protect yourself against these possibilities by knowing your rights and obligations as a landlord beforehand.
Your tenants could also be the cause of your bankruptcy. When you happen to rent out your property to people that careless about other people's property, this is not far from happening. Choose your tenants carefully, those that have conscience to protect your properties value and not leave it worthless. If there's a way for you to contact their previous landlords, by all means contact them and ask them about their experience with that particular tenant.
When you're ready to rent out your property, be sure that you're also ready to be on call 24/7. If there's some problem in the house, even the problem of security, be prepared to answer the phone to cater to your tenant's immediate needs. There are property-management companies that can act on your behalf but their service is not free. The usual asking price is at least 10% of your monthly rent price.
The most crucial aspect you need to monitor closely is your rent price. Consider the costs involved in renting out your property such as your mortgage payment, property tax, insurance, and the cost of maintenance. If you are to profit from the rent, your rent price needs to cover all these expenses. In fact, you need to factor in other miscellaneous cost such as maintaining the lawn because most tenants would not pay for this.
If you're a newcomer to this kind of business, perhaps you want to ask how you can determine the correct rent price. This task is left to your own discretion. However, consider the following when you're trying to determine how much will you rent out your property.
The number one consideration is the demand for rental properties. If there's a high rental property demand in the area, you can demand a higher price for your property too. This is true when your property is near business establishment or near downtown. Base your price on the overall soundness of your property too. Renters are willing to pay higher price in exchange for safety.
Before you rent out your property, be sure that it has been recently inspected by health and safety inspectors. They give out certificate or signed document as a proof that your property pass health and safety standards and you can show this to your tenant to demand higher price. You also need this certificate as evidence that your property is habitable in case your tenants comes up with a silly law suit claiming that they've developed crazy diseases while living in your house.
Don't let yourself to remain ignorant about your rights and obligations as a landlord. Your tenants have all the rights to sue you for negligence if you're not doing your obligations as a landlord. And you can be sued from as little a cause as a shaky stairs or a basement infested by molds. Protect yourself against these possibilities by knowing your rights and obligations as a landlord beforehand.
Your tenants could also be the cause of your bankruptcy. When you happen to rent out your property to people that careless about other people's property, this is not far from happening. Choose your tenants carefully, those that have conscience to protect your properties value and not leave it worthless. If there's a way for you to contact their previous landlords, by all means contact them and ask them about their experience with that particular tenant.
When you're ready to rent out your property, be sure that you're also ready to be on call 24/7. If there's some problem in the house, even the problem of security, be prepared to answer the phone to cater to your tenant's immediate needs. There are property-management companies that can act on your behalf but their service is not free. The usual asking price is at least 10% of your monthly rent price.
About the Author:
About the author: Jack Cockrel is a real estate investor based in Atlanta, Georgia. He has made more than 750 real estate transactions since 1996. For Real Estate Investing Tips get his free course Real Estate Investing Free Course.
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