Landlord & Tenants

How to become a landlord.

If you bought a property with the goal of becoming a first-time landlord, you have a lot to learn before posting a rental notice. In essence, this property will become your company. As with any company, you must manage it wisely and choose the right people, in this case the tenants.

Follow these tips to learn what you need to know for your new role as a landlord, maintain your property, and meet your obligations.

understands the laws

As a new landlord, the first thing you’ll need to do is familiarize yourself with rental laws, including the federal Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, gender, familial status, or disability.

States and cities have their own fair housing laws (some protect more classes of people than the Fair Housing Act), and cities may have laws that affect other issues related to a rent , such as how much you can increase the amount of the rent. rent per year, what the tenant can deduct from the rent if you don’t make specific repairs, and eviction rules.

A tenant selection plan should always be governed by applicable law and should be easy for any potential tenant to understand.

Evaluate the candidates

A good practice is to carry out a previous telephone evaluation of the candidates to inform them of the monthly value of the rent and any rules you have, for example if you accept or not pets. If the candidate is still interested, schedule a showing, show them around the house, and have them fill out an application and agree to a credit and criminal background check.

Credit checks let you know the applicant’s ability to honor their financial obligations. A low credit score may not automatically disqualify you, but it can be a warning sign. It is advisable to verify that the applicant has a source of income that allows him to pay the rent every month. For some landlords, the applicant’s income must be the equivalent of three times the rent.

Other warning signs include applicants who have already been evicted or have a recent criminal record. It is important to call the applicant’s previous landlords for references. If you are not comfortable with the information on a prospective tenant’s credit report, you are under no obligation to rent your home to them. In this case you can choose to ask for a larger security deposit. It is a way for tenants to show that their commitment is real. Being consistent with your practices also helps avoid confusion — and discrimination lawsuits.

Rentals and responsibilities

Before you rent a house to someone else for the first time, you should know that you are responsible for paying real estate taxes and repairing any appliances you include, as well as other parts of the house when necessary. The lease should state this information and specify who is responsible for things like lawn maintenance and general property upkeep. If you’re the landlord, consider offering discounts to tenants who tend to the yard, with the caveat that it should be done on a regular basis.

Prepare the lease for the tenant to sign. You can find standard contracts online or ask a lawyer to prepare one. In either case, the help of a lawyer guarantees that the operation is valid. You can tailor it to add any provisions you want, like an extra security deposit if you accept pets. As a landlord, you should protect your property with landlord’s insurance and encourage your tenants to obtain renters’ or renters’ insurance . These policies can protect you and your tenants in the event of unforeseen covered losses that may occur. Look for your Investment House here, click on the links below; If you need help don’t hesitate to call, Good luck and have a great day.

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