Becoming a landlord is not a decision you should take lightly. There are many factors to consider and responsibilities that come with buying a piece of real estate and providing housing for your community. Here are some questions you should ask yourself as you search for and buy a rental property so you can be successful and rent to the right type of tenants.
What Type of Rental Property Do You Seek?
There are many types of rental properties available on the market that you can choose to buy for your own. Depending on the type of renters you want to market to and the size of the property you want to take on, search for a property that fits your needs.
For example, you can look at single-family homes to rent to an individual family. This type of property can consist of a detached home with a garage and a fenced-in yard, which can cater to families with children and pets. With this property your renters can usually take on the responsibility of mowing and watering the lawn and handling snow removal in the winter.
If you are ready to take on a larger responsibility, you can look for a duplex in a college or university area that you can rent out to students or families. Or you can look for a four-plex or larger multi-family property to rent out to multiple families and individuals at the same time. A larger complex will likely require you or a hired lawn care and snow removal service for the property, and you may need a property management company or maintenance professional to help manage the property.
Do You Have a Renter Qualification Process?
Before you hand over the keys of your property to any renter, you must first make sure they are a responsible tenant. You can do this by qualifying them with a rental application, background check, and credit check. The rental application will collect all their personal information including their income, employment, and rental history, which you will want to verify with their last landlord, as well as their signature.
Get a copy of their last several paychecks to make sure they can afford the rent. Request a landlord credit and background check through one of the online credit bureaus. You want to make sure they don't have an extensive criminal history or have serious negative credit history on their credit file, especially owing money to a previous landlord.
If you're ready to take on a new rental property, you can contact professionals like Jarred Conley for more information.Share