Frederick County Short Sale Blog | Homes for Sale in Frederick Md

Accidental Landlords - 10 Tips

Lower house prices and higher rents have created a new type of real estate investor:  the accidental landlord.  Some bought new homes and couldn't sell their old ones, while others chose to invest in the changing market.  Either way, there is a lot to consider about being a landlord.

While rents are on the rise across the nation, remember that, just like sales, there is no national real estate rental market. All real estate is local, and the best and quickest way to success is to know your marketplace and what you can expect to charge for a fair rent in your area.

1. Study local classified ads, and scour the Internet.  Find out what neighbors are charging for rent.

2. Get as much information as you can on your market, and then set realistic expectations.

3. Not only is an experienced real estate agent a wealth of valuable information, they can also help you determine rental demand in your area. Consult with the REALTOR who helped you purchase your new home. 

4. For some, a professional property manager might be the way to go. It could cost you the first month’s rent and about 10% of your rental income in many cases, but the time, energy, and major headaches you could save may well be worth it in the end.

5. Definitely consult with a lawyer, one with experience in real estate. Even though many office supply stores and a number popular websites exist to help new landlords with writing up solid rental agreements, 2 or 3 hours with the right attorney could save you from expensive mistakes.

6. Be sure to use a CPA or Financial Planner. There are many tax breaks and write -offs with rentals that require proper planning, record -keeping, and a specific knowledge of local state ordinances and federal laws.

7. If you don’t use a property manager, consider a maintenance expert. Some of us are not very handy and just need to let pros do the job. If you can handle small repairs yourself, fine, but don’t let a small problem turn into something major just to avoid spending some money.

One of the major issues to consider about being a landlord, is the problems that come when renters don’t take care of rented property.  With this in mind, here are some important steps to take before your new tenant moves in:

8. Attract the right tenants with ad phrases such as “good credit and references,” “no pets,” “no smokers,” etc.

9. Create a thorough application process. Be sure to require at least proof of identity, past addresses and landlord contact information, employment information, references, how any people will be living with the applicant, how long they plan to rent.

10. No matter how great your prospective tenant seems, check references every time. Call their previous landlords and ask if the rent was paid on time. Find out how the property was left when they vacated. Were the tenants loud and troublesome? Did they complain a lot? Did they report small repairs in a timely manner? It’s easier to avoid a bad tenant now than to try and evict one later.
 

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The Highland Group

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