Sunday, 15 June 2014

National Realty Investment Advisors | Tips for Renting Your Home

According to National Realty Investment Advisors LLC, there are numerous ways to build wealth via real estate investment. There are real estate-related stocks and funds, and, for those with more start-up capital, there are many opportunities in commercial real estate and in apartment buildings. Those seeking to start out on a smaller scale, however, can build wealth through investing in a separate home, and renting that home to a tenant or perhaps even to several tenants. Single family home rentals have proven a very successful method of accumulating wealth according to Money Magazine.

This is an exciting prospect for many, but it can also prove daunting. For first-time landlords, it is essential to select the best tenants to rent out a home. What are some of the tips for landlords seeking to find good, reliable tenants, and to ensure the smoothest transaction possible? National Realty Investment Advisors lists them in the paragraphs that follow.

National Realty Investment Advisors Shares Tips for New Landlords

National Realty Investment Advisors begins by noting that screening tenants is utterly imperative. One would certainly not open the doors of his or her primary residence to anyone and everyone who came knocking, and the same level of caution and discretion is urged for those with rental homes.

National Realty Investment Advisors, LLC... by NationalRealtyLLC
In particular, new landlords are advised to never rent to anyone who has a bad credit history; running a credit check should be the first part of the tenant screening. Also a criminal record and eviction history should be run. References should also be collected – especially including the most recent past landlord. Lastly, 30-day bank statements and pay stubs should be reviewed to check true applicant cash flows. A tenant who is not vetted, or who is screened haphazardly, could introduce problems, such as late payments; he or she may also trash the place, cause property damage, or invite unsavory friends to move in. Screening tenants can help avoid all of these issues.

National Realty Investment Advisors goes on to suggest that landlords get everything in writing. This is just good, prudent business sense. To protect both parties, there needs to be a well written lease or a month-to-month rental agreement to document the important facts of the landlord/tenant relationship. Included in this documentation should be how tenant complaints are addressed, how and when repairs will be made, and more. A standard realtors lease can work, or contacting a qualified attorney could prove beneficial. Read them all yourself and understand them well.

Landlords should also ensure that they collect a security deposit before renting out the space. It is vital to establish a reasonable and fair system for setting, collecting, holding, and returning security deposits. Of course, it is a good idea to thoroughly inspect the condition of the rental property before anyone moves in to the residence. Document the results of this inspection, and get the tenant to sign off on it. This is required in order to avoid any future conflicts regarding repair and security deposit charges.

Another tip for landlords: Make repairs. Bad landlords seldom succeed in real estate, because they quickly find that no tenant is willing to pay them very much money! As such, it is crucial for the landlord to stay on top of maintenance needs, and to try to make every reasonable effort to make repairs as soon as they are requested. A property that is in disrepair will not only alienate tenants, but it may result in those tenants getting the right to withhold their rent payments. This is just the kind of legal entanglement that landlords want to avoid, and of course, doing so is usually a simple matter of being attentive to repairs that need to be made.

Even as landlords make repairs and deal with maintenance issues, National Realty Investment Advisors says they need to remember their tenants’ rights to privacy. When landlords plan to enter the rental property, they need to provide as much notice as possible. In fact, this is something that state laws require. National Realty Investment Advisors encourages landlords to check with all applicable laws from within their own state.

For any homeowner, insurance is an important consideration. This is doubly true for those who own rental properties. It is imperative to obtain enough liability insurance, as well as other property insurance. Good insurance will protect the landlord from lawsuits, shielding him or her from responsibility for any injuries or losses sustained on the property. And of course, in many parts of the country, procuring flood, storm, and fire insurance may also be wise.

National Realty Investment Advisors says that one of the responsibilities of the landlord is to provide secure premises. In other words, it is important to make certain that the property—and the renters inhabiting it—are not an easy target for burglars, vandals, or home intruders. Sometimes, this might mean installing a home security system, but usually, there are less expensive and equally effective measures that can be taken, such as installing proper lighting and keeping the landscaping neat and trim.

Still another tip for the first-time landlord: You MUST disclose any known environmental hazards. This might mean lead paint or mold that you know to be present on the property. The best solution is to get rid of these hazards altogether, of course, but until this is done, alerting renters to these potential threats is imperative and THE LAW. Undisclosed hazards are lawsuits waiting to happen.

A final tip from National Realty Investment Advisors: Oversee vendors. You may sometimes need to bring in a contractor to attend to maintenance and repair issues. Whether this is a lumber, a pest control professional, or a painter, the service he or she provides is ultimately something for which the landlord is responsible. Supervising the work is highly recommended.

The bottom line for the first-time landlord is that there are many factors to consider, and frankly, many avenues for trouble down the road. With that said, trouble can be averted with the proper foresight and planning – assuming you have the time to do it all!

National Realty Investment Advisors provides professionally managed real estate investment properties with safe, high returns and NO PROPERTY TAX for 10 years in the Philadelphia CENTER CITY DISTRICT area. The company helps investors develop large equity and rent rich portfolios with full on-site remote management so you do not have to do it yourself.

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