NEWS FLASH! Being a landlord is NOT a 9-5 job! You don't get to clock in at 9am, take a lunch break and clock out at 5. The life of a landlord is a little more spiratic than that. Some days you may not work at all and others you may put in a good 12 hours.
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What are the Landlords maintenance resposibilites? Do tenants have any responsibilities? These are two great questions that need clarification before a lease signing.
Lets start with the Landlords maintenance responsibilities. Landlords in most states are required to provide a rental property that is livable and meets basic structural, health and living standards. The Landlord will need to be sure the major appliances and utilities are functioning properly (HVAC System, Well & Septic Systems, Plumbing Fixtures, etc). You should always reference your lease to see whom is responsible for what.... Tenants have maintenance responsibilities too. Tenants need to maintain clean and sanitary living quarters. Negligence to the property you rent causing things like infestations will not typically be taken care of by the Landlord. Tenants are usually required to do small maintenance items like changing light bulbs, air filters, lawn care, etc.... You should always reference your lease to see whom is responsible for what. Olympic Real Estate Group 9200 Church Street #202 Manassas, VA 20110 Email: [email protected] You may be moving and have no choice but to rent your current home or your ready to make the investment and become a landlord. Either way- being a landlord has many perks! However here are a few things you should plan for:
1. Form a Limited Liability Company (LLC) to hold your investment property. This will help with protecting your other assets should an accident occur. 2. Keep your finances separate. Do not mix the income and expenses from your rentals property in with your personal expenses. Keep a reserve for incidentals, This account should be under your LLC name. 3. Renting to family and friends can be difficult. They should be treated as any other prospect tenant would by making them go through the proper application process and background checks. 4. Choose your location wisely. Location, Location, Location! Location ALWAYS matters when getting involved with real estate. 5. Make it a requirement for your tenants to carry renters insurance. This will cover the tenants personal property should an incident occur. Olympic Real Estate Group 9200 Church Street #202 Manassas, VA 20110 Email: [email protected] The question most asked about- the security deposit, what happens to it? Well, we all know this can be a vague question, however the answer is simple, did you obey the lease and maintain the property? If yes, then you should get all or most of the security deposit back at the end of the lease.
While there isn't an exact formula for "normal wear & tear" on a property, this chart here should be a good guide on what is and is not. Is this your first time in renting a home? Here are a few tips that will come in handy while looking for a rental home:
1. Property Management Companies are likely to look first at your income during the application process. Most will require your income as at minimal 3X the rent. 2. ALL parties over 18 will in most cases need to fill out an application and be included on the lease. 3. How does your credit look? The Property Management Company will typically run a credit report and check for items such as foreclosures, short sales, bankruptcy and unpaid credit lines. 4. Property Management Companies will do a reference check. They will call your previous landlord and any other references asked for on the application. 5. Do you have a pet? Not all Landlords are ok with pets living in their properties, but if that is not a problem, some will require an additional "Pet Deposit". Make sure you let your Landlord meets your pet. Landlords like to be sure the pet will not be destructive to the property. Olympic Real Estate Group 9200 Church Street #202 Manassas, VA 20110 Email: [email protected] CURB APPEAL PEOPLE!
*Finding a tenant with no curb appeal is not impossible; it just takes longer. *Your choices on prospects become fewer and come with lower qualifications. *No one likes to lower their rental fee- so get out there and spruce it up! Time is money- and in the case of rentals, the lost revenue is typically greater than what the actual repair is. *Take a good hard look at your property before marketing it. Have your property manager look it at and give suggestions on fixes before marketing it to prospect tenants. This will save you time and money in the long run! Olympic Real Estate Group 9200 Church Street #202 Manassas, VA 20110 Email: [email protected] |