Having a property for rent can be a good source of passive income. You become a landlord and get rent every month – it sounds easy.
The truth is, it is not as simple as just waiting around for rent money to come. As a landlord, you have to deal with things like property maintenance, tenant issues, and chasing rent. Let’s dive a little deeper into that and see other things a landlord needs to think about.
Did you know that a landlord needs to be on call 24/7? If there are issues that need fixing at 2am, you can be sure that a tenant will call during that time to let you know about the problem. A burst pipe, for example, needs immediate attention, so you need to address it ASAP.
If you have enough time to be on call, then great. Most people, however, do not have enough time during the day, plus it is cumbersome for someone to call you during wee hours of the night.
To preserve your investment, you have to maintain it. That’s why routine repairs are necessary. Experts suggest that you have to do a routine check-up every three months to assess the property and see if there is any damage. If there is, you can end up repairing it or you can have the tenant pay for the repairs. It depends on the terms you put on the rent contract.
If you end up paying for the repairs, it could be costly. This could mean taking money out of your savings to do repairs.
You can’t just be a landlord without being familiar with the landlord-tenant laws in your state. In Minnesota, there are several specific laws that you can find in this handbook. Know each one by heart so you know what your rights are as a landlord. At the same time, you’re also familiar with what legal action you can take when a tenant is destructive or doesn’t follow the terms in the rent contract.
A landlord has to do everything legally. This is why studying the landlord-tenant handbook is necessary. You have to allot time to read the handbook.
Let’s be honest. Not all tenants are good tenants. There will be ones that do not pay rent on time. As the landlord, it is your duty to follow up on rent regularly. You also have to watch out for tenants who have no intention of paying the rent and going AWOL. You cannot afford to just wait around and wait for a tenant to pay you.
As if the first 4 items on this list wasn’t hard enough, the landlord also needs to screen the tenants and draw up a rent contract that’s specific, fair, organized and detailed. If you do not have experience being a landlord, you may have a hard time drawing up a good contract. This is also true when screening tenants. Your screening process will help you avoid letting bad tenants rent your property.
When you take each one into consideration, being a landlord is not such an easy job after all. Are you a landlord that is looking to sell one of your rental properties? If you do want to sell, you have to option to sell it AS-IS instead of repairing it for the retail buyer. Selling it AS-IS can save you the stress from repairs.
If you are a landlord that is looking to sell your rental property, call Gold Path Real Estate today to discuss the options available to you at 612-758-0071.