By Desare A Kohn-Laski
Owning a rental property and letting tenants in and out of it on specified periods is not an easy task. As a landlord, there are many things you need to consider. There a lot of things to learn. Here are 5 of the top things you should know if you want to become a successful landlord.
Be on the legal side. Just because you have a property does not mean you can immediately let other people rent it. There are legal issues to consider. Some places may require you to seek permissions from the local government. Allowing tenants to occupy your space without delving into the legal aspects can catch you into real trouble such as paying huge fines or even dismantling of your property by the authorized government agency.
Income from rental properties is taxable. Even with a permanent employment, the fees you collect from your rental property are still taxable. This means you have to issue proper receipts to the tenants each time they pay rent. They can use these to claim their income tax deductions. As a landlord, declaring the fees collected as income and paying the right taxes will clear you of IRS obligations.
Your rental property should be tenant-friendly. Tenants have become wiser. They don’t grab the first property they see just because it is low-priced. Tenants are more after the comfort and convenience that the property can bring into their lives as their living space. Don’t strive to make it lavish but exert efforts to award privacy to the tenant. Soundproof the walls to prevent noise from neighbors and outside sources from being disruptive.
Tenants have their rights too. Once you accepted a tenant in your property, they automatically gain certain legal rights. There are specific legislations to protect their stay. Eviction is not an easy process. You have to fulfill certain grounds for eviction. Certain states will also require you to send advanced notice. This will give ample time for the tenant to seek next shelter.
You have rights too. As the owner, you can ask for security deposit to cover for probable damages. You also have the right to ask for initial and final month deposits. However, these should all be in accordance with local policies too.
Having a rental property is good if you are going to look at its potential income stream. Yet, it is complicated for those who are just beginning to walk the path of a landlord. Following the above tips can head start you to become a successful landlord. Otherwise, you can always seek professional help from a local real estate agent.