Buy To Rent and Become a Landlord

While many people imagine of owning a second home, the cost of buying a second piece of real estate is enough to scare most away, promising to return when they get a large raise or gain an inheritance. On the other hand, other people look at second homes as an investment, one that can start paying off as soon as they purchase the property. These people are landlords, and they buy property only to lease it again, assuring themselves a steady source of income.

Becoming a landlord takes a lot of effort, though. The job starts even before you buy the property. Do some research in your area in order to note how much the common renter will pay. Also, you should also bear in mind the kind of house you want to buy, so you have a clear idea of how much work you will be required to do.

You will also want to determine if the property will require any repairs or renovation before you will be able to start renting it. Examine all the house construction, including the electrical wiring and the plumbing. You should also inspect for pests such as rodents. You may want to hire professionals to analyze these systems for you, or at least confer with with the real estate agent.

Once you are convinced that the house requires only minor repairs, examine the home's condition. Examine the walls for any marks, check the carpet for signs of wear, and examine the kitchen and bathrooms to make sure everything is clean and in good working order. As a prospective landlord, you can buy a fixer-upper property to rent, but keep in mind you will need to complete all the repairs before you start renting it out.

Once you have the rental property inhabitable, your next step is to locate renters. Think about using a free website to post a classified ad for your property. It is handy and simple, reaches millions of people, and unlike printed ads, it is at no cost to you.

While waiting for an interested party to contact you, you ought to become familiar with your state's laws on landlord's and tenant's rights and responsibilities. You are going to want to find out your obligations, the tenant's rights and responsibilities, and how to carry out an eviction.

Make sure you investigate your potential renters before you permit them move in. Create an application for potential renters, requesting them to give such information as source of income, previous addresses and whether or not they have pets. Principally, ask for recommendations. One of the critical references is a previous landlord who can let you know what to expect from your new tenants.

Be frank with the conditions of your lease. Explain when the rent is due, the amount of the rent and late fees and when they begin accruing. Enter all of these terms in a written contract, and print up two copies for your tenant to sign-one for yourself, and one for the lessee. Try to find a tenant that wants a long-term rental, plus one who has a steady job. By investigating and being as comprehensive as possible, you will ensure that your property supplies you with a steady stream of income.