3 Tips for Owning Rental Property
Even in a bad income, owning rental property can pay off. As long as there are people in need of shelter, you should have a supply of tenants from which to choose. Owning rental property can be challenging though. Here are some tips to help you get started as an owner.
Keep It Simple
One of the most important things you need to remember when shopping for rental property is that you are not buying a home for your own family to live. You are making an investment. As such, you need to be practical when assessing properties you are considering.
Instead of looking for an architectural marvel to purchase, focus on simple constructions. When you opt for simplicities, you do not have to spend as much on repairs. For instance, a slate roof is a nice touch to your rental property, but the cost of replacing it can range from $17,000 to $84,000 for natural slate. By contrast, an asphalt roof can be as little as $1,700 to $8,400.
Be Wary of Safety Issues
Another issue that could eat into your potential profits from your rental property is safety. Safety issues can lead to injuries to your tenants and others. It can also lead to a costly repair down the road. A good way to spot safety issues is to have a licensed home inspector assess your home. He or she can pinpoint maintenance and safety problems that need to be addressed before you move in tenants.
It is important to note that some safety issues could potentially lead to lawsuits. Pay close attention to issues, such as:
- Unfenced swimming pools
- Broken or damaged sidewalks
- Lack of smoke and carbon monoxide detectors
- Asbestos
- Lead paint
- Exposed electrical wiring
It is imperative that the identified issues are addressed prior to renting your property to tenants. If you are choosing to accept federal housing vouchers from tenants, your home will be inspected before the tenant will be allowed to move into the home.
Be Prepared for the Worse
In a perfect world, every tenant you rent to leaves your home in perfect condition. Unfortunately, that does not always happen. It is possible for tenants to leave your home damaged and even take parts of the home with them when moving out.
You need to prepare for this. Keep funds set aside solely for making repairs. If you are not prepared for the worse, you could miss out on earnings while trying to raise money to repair your property.
Owning property is a good investment. However, you have to be smart about the decisions you make. With careful planning and decision-making, you can be a success. For more information or assistance, contact services like Uptown Rental Properties.
