Wouldn’t it be great if there were a way for you to make extra money, without having to do much to earn it? If you have property in a nice area, you could make a significant amount of money by renting it out. An empty home, apartment, or even room could save you some money and help you pay for your vacations, college education for your kids or grandkids, and even your retirement.
Since renting can be so lucrative, some people are ready to post an ad on Craigslist as soon as they snag some property. Renting can provide you with some extra money, but it could cost you more than you’d like if you go about it wrong. When you’re new to the world of property rentals, you may not be aware of some of the realities of the business. Before you list your property, make sure to keep these things in mind.
Be familiar with renter/landlord laws
Standard renter/landlord laws and protocol seem like they would be simple, but they vary dramatically depending on where you are. Renters should of course be familiar with the rental laws in the state and locality they’re looking in; however, property owners need to know the laws as well, so that they can protect themselves. You’ll need to know what you’re legally responsible for providing when it comes to lease agreements and how to handle evictions. If you end up making a mistake, you could have an expensive lawsuit on your hands.
Don’t underestimate maintenance costs
How much money will it take to keep your rental property in good condition? Does it need roof repairs or electrical re-wiring? Have you noticed any drafts in your rooms? Do you have a solid heating system? If you’re going to be renting a property, you’re going to have to afford any repairs it may need. Too many landlords and property owners underestimate these costs and end up making a lot less than they originally thought.
Vacant property=money lost
Have you ever heard the saying that time is money? It’s very true in the world of real estate, but not in the way that you’d think. When you decide to rent your property, don’t drag your feet when getting it ready. Every day that you lay down new carpet, paint the walls or are just between tenants, you’re losing money. This is why some people use local property rental specialists to list so that they can find renters fast. If you choose to go this route, make sure that you find a company that is familiar with your area. For instance, if you have shore property, look for coastal realty services and their reviews to see if they’re good.