The business of renting out property can be a big deal, but it’s important to ask the right questions. What are five questions you should ask before you rent an apartment you own?
- Why do squatters have rights? Although squatters are not technically considered homeowners, they do have some rights. They must be considered when someone stakes their very own claim to the property of another. Regardless of the fact that squatters don’t have the permission of another, they can still take up residence on the property of others. Squatters are not interested in purchasing or renting a home, but most likely have not had a place to live, and have discovered either a vacant property or a piece of unused land.
- Do you have a steady income? Knowing that an individual has a reliable source of income is important. You as the landlord should know whether or not the individual you intend to rent to has stable employment and sufficient income to meet the rent that you charge. Providing a formal application is an important part of the process, and it can ensure that the individual you intend to rent from you is giving you their information upfront in order for you to make the best decision regarding whether or not they believe you can afford the rent they are charging. This is a standard procedure for apartment hunting in any city.
- Do you intend to rent a pet-friendly property? If so, you need to ask the potential tenant what type of pet they have and how many they intend to have. When a tenant has pets, they can potentially cause damage to the property. This is why it’s important to ask the details upfront, and then determine if you are willing to take that risk. You may opt to allow dogs and cats, or just dogs and not cats. Always check with the local guidelines of the city in which you live. Keep in mind that guidelines may also vary by state. Knowing what your rights are as a landlord is important before you draw up an official legal document to rent to someone.
- Do you have renter’s insurance? Renter’s insurance is now required in almost every state and city. This is great for two reasons. It protects personal property and not real estate, but it also holds the renter accountable for their personal items. The real estate itself is the responsibility of the property owner. There is no good substitute for being responsible for your own property. Asking the renter to have renter’s insurance is important. Get proof of their documentation as soon as you can.
- Are you willing to allow me to run a criminal background check? This is last but not least. It is important to ask the potential tenant outright before you have them fill out the application and sign anything. Watch their reaction, and then follow through with sending in the background check to the state to ensure that they pass this. As a property owner, you must ensure that you do your due diligence and show your neighbors that you are a responsible property owner. This also includes the fact that sex offenders could be living in the same area, and it is vital that you know where they are located in proximity to your rental property.
Renting a property out to others is a big responsibility. There are a number of factors that you should consider before you choose to become a landlord. Additionally, it is important that you take a course to learn more about what is involved in renting to others, and potential expenses in the beginning. It is also important that you fully understand the risks involved when becoming a landlord.
Owning rental property is a great way to earn income, and there are thousands who have become quite successful at it. If you desire to become a property investor, it is wise to talk to those you trust who have some experience. It may also be beneficial to take a class.
