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If you own a property you’re not using, renting it out can be an easy way to make some money on the side without having to do a lot of extra work. But the emphasis is on the word “can.” Being a landlord can also potentially be a headache.
Being a landlord doesn’t have to be problematic, though. If you’re thinking of launching a side business by renting out your property, you could simplify the process for yourself by keeping the following essential tips in mind.
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Enlist the Help of Experts to Make Money as a Landlord
Being a landlord can be a challenge. This is because theoretically it can entail many hats and many jobs. You have to review and grasp the landlord-tenant laws in your state, market your property, screen tenants, and collect rent. What’s more, you need to know when you can begin to evict a tenant if they’re not paying rent.
That doesn’t mean being a landlord has to be a total challenge. Many of the necessary tasks may be taken off your hands by a property management company.
A reputable property management company in your region will handle most of the busy work. True, they’ll charge a fee, but working with one may actually boost your chances of making a lot of money in the long run.
For example, a qualified property management company will screen tenants more thoroughly than you would probably be able to on your own. This raises your odds of finding tenants who will pay their rent on time.
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Take the Time to Set an Ideal Rent Price
This is a duty that comes with being a landlord. But it will require some time and effort. But it’s also worth the trouble, because doing it right will make the experience of being a landlord much easier and more rewarding.
When determining how much to charge for rent, you have to strike a delicate balance. If you charge too little, you won’t earn as much from renting out your property as you hoped. But if you charge too much, you may have a constant struggle to find tenants.
You must also account for any maintenance and repair expenses that you might be required to cover in order to ensure you don’t charge too little.
There are various ways to determine what you should charge. You can research local incomes via the U.S. Census Bureau’s website. Also, check rent prices in your area via the U.S. Department of Housing and Urban Development’s annual Fair Market Rent reports, which list rents for 2,500 metro and non-metro areas across the nation.
This is another job that a property manager in your city may be able to handle for you. Their familiarity with local rents will make it easy for them to determine how much you should be charging as a landlord.
Consider Requiring Renters Insurance
This is an issue you’ll have to discuss with a property manager. You need to determine whether there could be any reason it might be preferable not to require that tenants have renters insurance before they’re allowed to move in.
In some instances, it may not be desirable. Generally, though, requiring renters insurance is a good idea. Accidents can happen, whether you’re being a good landlord or not.
If rental property gets destroyed or damaged, a tenant who doesn’t understand what your separate insurance will and will not cover may try to sue you for damages. At the very least, your renters might file a claim to collect from your insurance.
It’s highly unlikely they’d be successful. But in the meantime, this could cause you a lot of headaches you’d prefer to avoid.
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Use These Tips to Be a Successful a Landlord
Again, the main point here is that being a landlord can be a great way to generate income from an unoccupied property. If you partner with experts and keep the preceding tips in mind, it should also be fairly easy.
For more ideas on generating income on the side, be sure to browse our blog often.