I am becoming a landlord and want to learn tricks?
I guess i would like to know where to find leases, terms, down payments, tricks of the trade. Any help appreciated.
Tagged with: leases
Filed under: How to become a Landlord
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There are too many to list.
I use the lease agreement that comes from my states real estate board, this way I am always up to date lease wise on the current state laws.
We have a house in Philadelphia that’s being rented out to a tenant right now. As far as leases, terms, and down payment, we hired a property management company to do it for us, btw mines ReMax.
First and foremost, go to your states website and search for landlord/tenant, and read their handbook and get yourself aquainted with the laws and regulations.
Then, and I’m assuming you want to do this on your own without paying a property management firm to do it for you…
Go to your local office supply store, or look online, for a lease or rental agreement specific to your state. I would like to emphasise specific to your state, because some states vary.
Look in your paper, and on craigslist to figure out what the average rent is for your area. Then charge around that much, or more or less, that part is up to you.
Depending on the state, you can collect a security deposit that is equal or above the asking rent – but again, different states have limits on the security deposit, hence checking the state website for more information on that.
Take pictures, and maybe even a video camera of the rental unit before you show it, and then do a walk through with the tenants before you both sign the lease (which can be done right after the walk through). This protects both sides.
Good luck with this. As a tenant, I know it’s hard to find a place to live at times, and I always try to help my landlords out whenever I can. But occassionaly you come across a landlord that doesn’t protect himself, and a co-worker recently won every penny he paid to the landlord because the landlord was not able to prove certain damages weren’t there when the tenant moved in. So protect yourself. Assume worst case, hope for best case.
In any area of your life it is best to have a mentor.
Find someone that you know who has done this kind of thing successfully in your area. Ask them your questions and get permission to come back and ask more questions.
I know this may not be the answer you want but I believe it is the best advice for you.
http://search.yahoo.com/search?p=being+landlord&fr=ush-ans
READ up on LL/Tenant law in your state and community. READ the classified ads and see what other local LLs are doing. Craigslist is a great place to do this, also your local paper. Can buy standard leases for your state, applications, etc. at Stationery Store. Talk to prospective tenants, check their prior LLs and work history. Not more than 1/4 income for rent, not more than 1/3 with utilities.