Investor Or Landlord – Which One Am I?
Most investors think of properties in terms of gaining a profit rather quickly. But what happens to the investor who cannot sell a property due to the market conditions. Plan B would be to use the property as an income producer and lease it to a tenant. When becoming a landlord, your first responsibility is to understand and abide by the state landlord tenant laws. These laws dictate the rights that the landlord and tenant have as well as some very specific rules regarding deposits, repairs, and requests. These laws actually dictate portions of the written lease. Always give the tenant a copy of the state laws. Meticulously screen your applicants. Along with verification of employment, running a comprehensive criminal background check is highly recommended. Previous rental history is also helpful along with a credit history. The same system should be used for each applicant to avoid mistakes and possibly the accusation of discrimination. If you are not using a property management company, you will need to use a residential lease. Make sure the lease you are using is specific to the state where the property is located. A lease for a home in New York will do no good if the home is located in California. State laws widely vary. Keep detailed records of everything. Keep all original records. Make copies of checks received and always have the...
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