Renting out a property has the potential to be a lucrative endeavor, but there are many to-dos to cross off your list before you start taking in tenants.<\/p>\n
With rental vacancies low and rates climbing, renting a property might seem like a lucrative opportunity in today\u2019s market. But before you get into the rental game, you need to have a rental game plan.<\/p>\n
Below, our licensed property manager\u2019s share tips on getting started with your rental.<\/p>\n
It\u2019s a Time Commitment<\/span><\/p>\n \u201cDepending on how many units someone wants to manage, it\u2019s definitely a big time investment.\u201d\u00a0 \u00a0People often underestimate the amount of time it takes to be a landlord.<\/p>\n Even when it comes to evicting a tenant, local, state or city regulations may permit a tenant to stay even when rent money is owed, says Tom Barron – who has dealt with difficult evictions more than once.<\/p>\n Whether or not you use a property management service, screening and finding new tenants, dealing with leases, managing repairs and collecting rent all take YOUR time.<\/p>\n Have a Financial Plan in Place<\/span><\/p>\n \u201cYou have to analyze this like any investment.\u201d\u00a0 The key is knowing and understanding h<\/span>ow to analyze real estate, which a licensed agent or financial adviser can help, Barrons says.<\/p>\n Identify your long-term goals with the property and your expectations for appreciation, revenue and expenses.<\/p>\n Barrons advises putting aside 20 percent of annual rental income as a \u201crainy day fund\u201d in the case that you are faced with a costly repair to your property.<\/p>\n When Finding Tenants, Do Your Homework<\/span><\/p>\n Run credit checks on all applicants and check their references of past landlords.<\/p>\n \u201cMost individual owners don\u2019t have the ability to run credit; they don\u2019t know how to call and talk to a landlord. \u00a0A number of online credit-check services are available; most require a one-time or subscription fee.<\/p>\n Finding new tenants can be a time-consuming process and is an important consideration to take before renting your property.<\/p>\n Research Your Local Market<\/span><\/p>\n If it\u2019s a neighborhood heavy in rentals, go on several rental sites \u2013 we also have access to the (MLS) multiple listing services and see the rental price of comparable units. On the other hand, if your property is in an area with a lot of homeownership, talk to a real estate agent about what people are looking for in the market and what\u2019s important to them.<\/p>\n \u201cGetting that first-hand knowledge will definitely be helpful as a person looks to either buy a rental unit or convert something they own to a rental unit.\u201d<\/p>\n Get Legal Advice<\/span><\/p>\n If you\u2019re a first-time landlord who has no prior knowledge of legal contracts and leases, sit down with a real estate attorney. \u00a0Make sure to have him or her recommend a contract that can be enforced, in the case that there is a tenant violation.<\/p>\n Use a Property Management Service<\/span><\/p>\n The easiest way to combat making fatal first-time errors is to hire a property-management service. From maintenance and repairs to credit checks, a good property manager can lessen the burden of landlord duties.<\/p>\n These services don\u2019t come free. An average fee for property management is 10 percent of the annual rental income.\u00a0 \u00a0HOWEVER, Barrons motto is\u00a0 – If you think hiring a Professional is expense, wait till you hire an amateur. <\/span><\/i><\/b><\/p>\n If you are interviewing property managers, please include us at: www.BarronsPropertyManagers.com or call (850) 934-2588<\/p>\n <\/p>\n <\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Renting out a property has the potential to be a lucrative endeavor, but there are many to-dos to cross off your list before you start taking in tenants. With rental vacancies low and rates climbing, renting a property might seem … Continue reading