Articles and Information
Investing in Rental Property basics
Finding Rental Property
If you are just starting out, I recommend looking for a rental house that is pretty close to your own home. That
way you don’t have very far to travel to do your property inspections. New investors should also search for their
house to rent in the best area in which they can afford. Using the internet can be a great tool for a rental owner
and help the new investor accomplish many of those tasks. You can go online to find out the quality of schools
and the local crime rate. Computers are also a great way to locate the houses to rent that you intend to buy.
Online you can find foreclosures, government auctions, and free property listing sites.
Rental Listing
There are many places and ways to rent out your house. I always recommend putting signs in the yard and the
surrounding area. Some rental property investors will use the newspaper for rent listings; which can be very
expensive, averaging around $250.00 just for four weekends in one month. However, renting out your house
online can be a much cheaper way to go. A rental owner can advertise rental property and get much more
exposure at a fraction of the cost. There is a website that offers landlords rental listing for a year for under
$40.00 and that is risk free with a money back guarantee.
Rental Property Forms, Tools, and Courses
Using legal real estate forms, including rental property forms is a must when it comes to rental investing. You
should always keep records of all your real estate forms such as: residential rental application, landlord deposit,
tenant background check, rental lease, and any notice to landlord or tenant eviction. That way you are more
secure if it has to come to litigation. There are also tools and courses new investors can take advantage of:
instant background check, Home repair cost calculator, Landlord Toolkit, Mortgage loan tips, and Tax free real
estate investing are just a few.
Rental Property Maintenance
As the rental owner you should always perform regular inspections of your property; because you will be
responsible for the day to day maintenance, as well as the unexpected repairs that arise from time to time. This
means from the roof to the basement, as well as all of the lawn care. Unless you put a clause in your contract
that requires the tenant to handle some of these duties or you hire a property management company.
Zach Kling is a Real Estate Investor and Entrepreneur on-line and off, as well as writes Real Estate and business
related articles.
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Landlord – To Be Or Not To Be
Investing in Rental Property can be a wothwhile and profitable venture. For one thing, the property that
you own and rent out will appreciate over time. Another advantage is the positive cash flow the property will
generate. On the other hand, in order to take advantage of these benefits there are some things you should
be aware of.
Being a Rental property Landlord can be very time consuming if you plan on doing it all yourself. You
could be called in the middle of the night if the sink starts leaking, the toilet gets clogged up, or some other
emergency arises. There are also the regular issues that have to be taken care of, such as lawn
maintenance. Unless this is going to be your only job; I suggest you hire out, at least some of these
responsibilities.
If you decide to hire out some of the responsibilities of managing or maintaining your Rental Property, there
are a couple of different options you can consider. You can hire a property management company. A good
property management company will assume virtually all of the responsibilites of your Rental Property. They
will take care of tenant complaints, lawn maintenance, collecting rent, advertising for and screening new
tenants, as well as property maintenance and repair. A great way to find a good property
management company is to join your local REIA. They should know of good local property management
companies.
Another option to hiring a property management company is to allow a tenant to oversee the Rental
Property for you. A tenant can handle yard work, maintenance, and minor repairs, such as unclog toilets and
so on. You and the tenant can decide how much or how little responsibility you give them, as well as the
amount of rent you are willing to knock off for the assumed duties. All this should be included in your
rental agreement.
Owning Rental Property and Being a Landlord can be a great way to increase your net worth, and your
positive monthly cash flow. Just remember, there is also a lot of responsibility that goes along with it.
However, you don’t have to be the one that handles it all. You can always hire out whatever you don’t want to
do, or don’t have time for.
Zach Kling is a Real Estate Investor and Entrepreneur on-line and off, as well as writes Real Estate and business
related articles.
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Problem Tenants – Just Say No!
Problem tenants can be a Landlords worst nightmare. Some characteristics of problem tenants are
destroying your property, not paying rent, and even suing you. So, people who invest in rental property want
to avoid problem tenants like the plague, and always do a proper screening of your potential renters.
Pre-screening renters is a good way to avoid problem tenants. As a Landlord, thefirst interaction you have
with a perspective tenant is usually on the phone. Once you make the initial contact with your potential
renter, you should have a list of questions ready to determine if you move on to the next step or not. Some
questions you should ask would be rental history, income, employment history, credit history, and if they
have any pets or children. Most potential tenants will be happy to answer your questions, but be leary of
people who seem reluctant to answer. Also, be cautious of people who complain about the property
managers at their current residence.
After you pre-screen your tenants; you would then move on to the rental application, as long as you were
satisfied with the potential renters previous answers. In order to fill out the paperwork, you should have the
applicant physically come in to pick it up. That way, you can get a basic idea of the kind of person they are.
Now don’t misunderstand me, you will not be judging them on their race, age, sex, do they have a
mercedes, a $1000 suit, or anything like that. What you will be noticing is, are they clean and presentable.
Another thing you can look at is their vehicle; not what kind it is, but do they keep it clean and take care of it.
This can be a glimpse into how they might treat your property. The next step is to have them fill out the rental
application. Once the candidate has filled out the application, you then pull a credit
and background report .This insures you have background information on the potential renter. Always
keep the paperwork to prove you are treating all of your applicants the same way.
When investing in rental property the bottom line is; as long as you preform a pretty thorough screening process, the
less likely that you are going to end up with problem tenants. Also, always try to keep records of all your transactions.
Just remember, a good tenant can be the difference between peace and rest, or you being up all night wondering how
you can get the problem tenant out.
Zach Kling Is a Real Estate Investor and Entrepreneur on-line and off, as well as writes Real Estate and
Business related articles.
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Landlord Tips
1. Rental agreement or lease
It is very important to have a rental agreement signed between you and your tenant. That way
everything is in writing, so no one can come back and say oh I didn't know. It also protects you in case of
litigation Be sure to put all your terms in the agreement.
2. Length of agreement
While investing in rental property I always advise the first lease to be for 6 months or 1 year. Then when it comes
time for renewal you can increase the term to 2 years etc., as long as you are happy with the tenants.
3.Security Deposit
When it comes to a security deposit, you should get the equivelant of 1 months rent. If there is ever a month
where a tenant asks you to accept the security deposit for the rent be leary. The security deposit is there so
that when the tenant leaves you will have money to cover the cost of any damage that he or she might have
inflicted.
4.Rental rate
You should always try to rent your property at the market rate or a little less. To find what the market rate is in
your area; you can look in the newspaper to see what rent is going for in your area, or contact a rental
agent.
Zach Kling Is a Real Estate Investor and Entrepreneur on-line and off, as well as writes Real Estate and
Business related articles.
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