It can be very rewarding and lucrative when becoming a landlord. Whether you choose to hold on to a property that you don't plan on occupying or you want to make some money on the side, renting out a home to tenants can come in handy. Unfortunately, it can also mean dealing with tenants that are not so pleasant. In every landlord's tenure, you have to expect you are going to deal with problems. It could be the water heater breaking or the tenants moving out with no notice. Whatever the cause may be for your frustration, there are some tips that will help you avoid many of these issues.
Screen All Candidates
The best way to determine who a good tenant would be is to do your homework ahead of time. Even if you do not have the time to screen each applicant, you should hire a company to do it for you. This will help protect you against bad tenants that have a proven history of not fulfilling their rental contracts. In the end, it can save you a good bit of time and money. When checking out their history, you want to be sure to verify their income, check their credit score, and call previous tenants at the very least. You can expect to pay around $30 to $50 for a credit check.
Make Sure They Can Afford It
When determining if they can afford the rent, a good rule of thumb is to use the 40 rule. Take their gross income and divide the number by 40. This is how much rent the tenant should be able to afford. Anything over this, it could increase the risk of the tenant not being able to pay inn the event something happens.
Know Your Rights
As a landlord, it is your duty to maintain a place that is habitable for your renters. This means when the water heater breaks, it is likely your responsibility to fix it. On the other side, there are certain times where you may not be responsible for specific repairs. Your renter has a responsibility to tell you when the conditions of the space change. If they do not tell you, and the situation worsens, the responsibility can fall on the renter. You also have certain rights to be able to enter a property without any notice in some situations. By working with a real estate attorney, you can understand what obligations and rights you have as a landlord that make each situation more cut and dry.
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