The number of first-time buyers is declining. In the past, first-time buyers make up about 40% of all homebuyers but that percentage is continuously shrinking, even when millennials keep on showing interest in becoming buyers, too.
So if people are not buying starter homes that must mean that the rental market is booming, eh? In a lot of areas, especially those where unemployment rate is low and the population is high, it is. But hold your horses! Before you start looking for a house for sale that you can rent out, you first have to know the responsibilities of a landlord.
Here are five things you need to know:
– There are landlord-tenant provisions that cover such issues as security deposits, extent of access to the property, and required notice to give the tenants if you want them to leave. There are also laws on habitability and anti-discrimination. It is important that you fully understand the law before so you know what you should or shouldn’t do.
– It is ideal that you live near the rental property so you can check on it periodically. You can also easily take care of all repairs yourself. It’s also more convenient for when there are interested renters who want to see the property. If it’s not possible, then at least invest in employing a property manager who can take care of it all for you.
– It is highly advisable that you do background and credit checks on all prospective tenants so you would know who you’re handing the keys to. Make sure you check the tenant’s credit score. However, not everyone has enough credit history to actually tell you something significant. Do an interview to get to know the potential tenant and check references.
– Renting out is not a get-rich-quick magic that will get you loads of money in no time at all and without having to work for it! You are going to spend money to prepare your property for tenants, purchase landlord insurance, and also pay taxes. Being a landlord is more like an investment strategy. You have to be realistic with your goals.
So, are you ready to be a landlord? Are you certain you can handle the responsibility? If so, we can help you look for the perfect rental property. Do not hesitate to call us and let’s see what your next step should be.