THE BASIC DO’S AND DON’T OF RENTAL ‘S
Written by Scott Esmail
Do’s
Always ensure that the rent you receive from the property is covering your mortgage. Alongside, you should be saving a few dollars that you will be needing in future for periodic repairs. In case the average rent you receive is below this specific amount that saves you money and pays your mortgage expenses, you will end up losing money.
– Contact a reputable and reliable property management company to manage them for you, if you can not. You cannot simply rely on your friend or cousin to check on the property you are investing in. A property management company will take care of all the emergency repairs, handle the tenant screening and deal with all the paperwork.
Don’ts
– Never ignore the credit screenings. Your property management company will be responsible for running credit checks on all the prospective tenants. Consider these results seriously, although of course, I understand the fact that you want to rent out the property as soon as possible. However, if you end up making a deal with a tenant who carries a low credit score, it is clear that you may not receive the rent payments on time. Many landlords have had bad experiences when they compromised on dealing with a tenant who had a history of a negative credit score.
– Avoid investing in a property you have not physically visited. No matter if your best friend is the one selling you the property, there is still a high chance that you may end up buying something unexpected. In case you do not have the time to go and check on every property you invest in, which is the case most of the time, make sure that you consult a property manager or a real estate expert. Real estate experts have years of experience due to which they know how to fulfill your requirement so they do all the checkup work for you.
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