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Beginners Real Estate Investing Guide
Real Estate Investing - Ask
Questions Before Making an Investment
First Time Real Estate
Investor
Real Estate Investing - Planning
Your Investment Strategy
How to Find Real Estate
Investment Properties
Getting a Professional Home
Inspection
Large Profits From Inexpensive
Real Estate Repairs
Real Estate Investing - Costs
and Fees
Real Estate Insurance
and Risk Management
Real Estate Investment Risk
Part 1
Real Estate Investment Risk
Part 2
Getting The Best Return For
Your Investment
Creative Financing
For Real Estate Investors
Real Estate Investment Tax
Considerations
Real Estate Rental Properties
- Great Investment or Nightmare
Real Estate Foreclosures - Great
Deal or Headache
Flipping Real Estate for Profits
Slow Return On Real Estate
Investments
Negotiating for the Best Possible Real Estate
Deals
Real Estate - A Time to Buy and a Time
to Sell
Creating Your Real Estate
Investment Strategy
Investing and Growing
Your Real Estate Portfolio
Commercial Real Estate
Investing
Real Estate Marketing
Understanding Real Estate Law
Do You Need An Real Estate Agent?
What The Real Estate Mortgage
Lender Sees
Do You Have A Career In Real
Estate?
Rural or Urban Real Estate
Investments?
Real Estate Investing on the
Internet
Real Estate Investing
- Property or Paper? |
Real Estate Investing - Introduction
Real Estate Investing - Rental Properies - Great Investment or Nightmare
You probably know people who invest in rental properties. Is this something
that you are interested in doing? While buying and selling real estate can
be very profitable, rental property investments can provide you with a long
and steady income. But rental property investment isn't always what it is
cracked up to be! By keeping property to take advantage of special tax breaks,
as well as capital appreciation, you may be able to cover any expenses associated
with the property, but this isn't always the case.
Think about this: As the property owner - the landlord - you will be legally
responsible for the mortgage, the taxes, and insurance. You will also be
legally responsible for making repairs, and you may even be responsible for
extermination services on a regular basis, and possibly for yard maintenance.
You must also find suitable renters, and when the property becomes vacant,
it will have to be cleaned and repaired, and you will have to find suitable
renters again. Not all renters are good. Some will willfully damage your
property - especially if they are behind in rent, and you have to evict
them.
The landlord is legally responsible for ensuring that repairs are made to
the property. Tenants often withhold rent until repairs are made, even though
it is not legal for them to do so. Again, there are numerous things to consider
before investing in rental property.
Before you invest, consider the tax consequences - or benefits - of investing
in rental property. Also consider your total financial responsibility as
compared to the potential income you may gain from the property. Research
the rental market in that area. If rents are historically very low in that
particular area, you can't expect to charge a high rent and find tenants
for the property - but a high rent may be required to cover your costs.
Before renting property out, make sure that potential tenants fill out an
application, and that you do a background check. Check their credit history.
Talk to past landlords. Call their employers. Have a lease agreement. Make
sure that the lease agreement is in laymen's terms, so that everyone understands
what it says, and what their rights and responsibilities are.
You should require a security deposit, pet deposits if you will allow pets,
the first month's rent, and the last month's rent - all in advance. Your
lease agreement should also state the length of the lease, and the penalties
that will apply if the lease is broken, and how much notice the tenant must
give you before they vacate the property. The lease should also state who
is responsible for different types of maintenance.
Make absolutely sure that you live up to your end of that agreement. If possible,
go above and beyond what is expected of you as a landlord. When repairs are
needed, make them quickly. Make sure that you don't end up going through
legal hassels because you were slow to make repairs, or because you didn't
live up to the lease agreement.
Get insurance! Many landlords now require their tenants to carry renter's
insurance as well, and this is something that you should consider. Their
renter's insurance will protect you against any damage that they do to the
property. You should have your own insurance that protects you agains serious
repairs as well, such as roof repairs, carpet repairs, and repairs to air
conditioning and heating systems.
Keep good records of payments made to you from your tenant, as well as payments
that you have made that relate to the property, such as taxes, insurance,
and repairs. Note that tentants don't always pay on the exact date that the
rent is due. You do need to find out why. It could be that their payday falls
a few days after the rent is due, or that they are having a temporary financial
crisis. Tenants that occassionally pay late are not usually concern, but
tenants that always have a reason as to why they cannot pay the rent can
quickly become a problem.
Don't lose your temper with your tenants! Always be calm. Be serious, but
be nice. Charge late fees on past due rent, and this will encourage them
to make the payment on time. Make sure that you know the tenant/landlord
laws in your area.
Become friends with the neighbors of your rental property. Remember that
these same neighbors will likely become friends with your tenants as well.
But if your tenant is not being a good neighbor, you will hear about it very
fast, if you have established communication with the neighbors. If your neighbors
aren't happy with your tenants, it can affect the value of your property!
Use caution when dealing with neighbors, however, as they may not say very
nice things about you to potential renters in the future!
If a legal action comes up, that is not an actual eviction, try to have the
matter arbitrated, as this is often faster and cheaper than legal action.
While the property is rented, make sure that you are keeping it in good repair,
so that the value doesn't deteriorate, or so that expensive repairs are not
needed before you can re-rent the property!
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Beginners Real Estate Investing Articles
How to Advertise a Rental
Property
How to Build Equity
in any Real Estate Market
How to Find Motivated
Sellers
Developing a Profitable Real
Estate Investing Strategy
Bird Dogging: Getting Started in
Real Estate Investing
Buying Your First Home
Using Lease Options to Purchase Real
Estate
Real Estate Foreclosures
Increase Your Net Worth Through
Real Estate Investing
Interest Only Mortgages
Real Estate Investing
No Money Down Real Estate
Investing
The Power of the Lease Option
Real Estate Investing Tips
Real Estate Investments
Refinancing Your Mortgage
Loan
Paying Your Mortgage
Selling Your House without a
Realtor
"Subject To" Real Estate
Financing
Using Trusts as a Real Estate
Alternative
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