These days more and more people are opting to rent their homes out instead of selling them.
The millennial generation especially has become quite skilled at having multiple homes- this is typically the case because a lot of them became homeowners in their younger 20's - before they were married; compared to "back in the day" when you would get married in your younger 20s. Nowadays, with the younger generation waiting until they are established to tie the knot, when they do get married, there is an option to sell one of the homes, or rent it out for extra income.
1. Establish the importance of rent
Rent is how you make your money - it is your bread and butter. It is the main purpose behind your "landlord" title. You cannot afford to be "Mr. Nice Guy," when you are running this business. If your tenants stop paying rent, are not communicating why they stopped paying rent, ignoring your calls … or ignoring you completely for that matter - do not give chances; instead, give eviction notices. Otherwise, you will end up with a tenant who falls behind 4+ months of rent and there is no catching up at that point.
Note: While the general rule of thumb is to begin eviction proceedings for unpaid rent, sometimes it is a good idea to work with people who genuinely need help. You should make these decisions are your discretion.
Another point here is to collect rent online! It is now officially 2019, virtually everywhere you go has taken advantage of today's technology, and you should too! Don't worry with late checks, bounced checks, losing cash, etc. Simply allow your tenants to pay you online. There are a ton of options for you to use for this:
2. Properly Screen Tenants
Screening tenants is just as important as paying rent. You should seek a qualified renter with a proven track record of paying bills timely. Performing credit score checks are equally important, and you are also privy to judicial case search information to research criminal history by state. Ask for references and check them! Verify employment, as well as past rental/ home ownership records.
Here are credit ratings in a nutshell:
Excellent credit — 750 and above
Good credit — 700 to 749
Fair credit — 650 to 699
Poor credit — 600 to 649
Bad credit — anything below 600
3. Become familiar with Fair Housing Laws
The 1968 Fair Housing Act is a federal act that protects the buyer or renter of a dwelling from seller or landlord discrimination. This act makes it unlawful to refuse to sell, rent to, or negotiate with any person because of that person's protected class. The goal of this act is to create and maintain a unitary housing market.
While Wikipedia isn't necessarily considered a "scholarly" article, start there! Head to their website for a summary of the act, as well as a few examples; you can use this link:
We hoped you enjoyed reading, and learned something too! For more information, or if you have any questions, feel free to leave us a comment here, our social pages, or shoot us an email!
Posted on 01/04/2019 at 11:18 AM