What to do to become a landlord:
Have you been interested in investing into real estate or hoping to make a little extra money every month? Well then you can actually make it happen with your own property, some rent out one room as an AirBnB rental or even rent out the whole property if they can afford to stay at a second property. Especially here in Staten Island it is very common that many people rent out basements, bedrooms or even whole floors out. However, there are some important things to consider and make happen before moving forward with renting out your property.
Having a rental unit, rental room, rental property, it all comes with risks so you need to be prepared. First thing you should do is assess your situation. Are you comfortable with sharing spaces with your tenant, even though it can be cost efficient it may not be for some people. Another thing to think about is if you own the property you are considering renting then ensure the mortgage allows non-owner occupants to live on the property and if not then setting it up. Something else to consider would be are you a long-term rental property or a short-term, this would be something that occupants would want to know and needs to be arranged in an agreement to keep all parties safe. Lastly, assessing the neighborhood and the property you are renting out to be able to see if people would want to live there.
If you decide this is the decision for you after considering all options then you should continue in a legal matter. As a property investor, you need to make sure that your transactions are lawful. Having a fundamental knowledge of the Residential Tenancy Act are among the things to be aware of before renting out a home in this regard. This will guarantee that real estate investors are behaving in a compliant manner with the law. A certified public accountant should also be consulted, and you should research all applicable tax laws pertaining to investment properties as well as federal, state, and municipal housing rules in your real estate market. You should also be aware of your rights as an invention as well as the rights of a tenant so they are protected and feel safe living on your property.
After proceeding with legal matters, the next step would be finding tenants. With how the market is, it can either be easy or hard to find specific tenants. A lot of people are searching for rental property but with the rent increasing drastically in New York, it is hard for some to afford. It can really go either way depending on the neighborhood, price and the tenants your property attracts. It's not a good idea to rent to relatives and family. You will definitely have to advertise the property, Local newspapers columns and internet directories like Facebook are some of the greatest places to advertise your rental property. Learning how to choose a decent tenant is another important skill prior to renting out a home. Never let just anyone who submits an application into your home. You must carefully analyze the application, conduct background checks, and get references as a real estate investor. Selecting a tenant will be the hardest part of the whole process, nobody wants to have a tenant who causes damage to their property, doesn’t pay rent on time and disrupts the neighborhood living there. Don’t be afraid to be thorough with the process and only select someone who you feel comfortable hosting at your property.
The last step is creating a lease agreement, you need to create a lease that all properties understand and a lease that is clear. Things you need to address are whether it is a month to month lease or annual. Is the home pet friendly, what the security deposit is, eviction terms, conduct the tenant should follow (no smoking, noise levels, etc), late rent penalties and many more. Be clear and precise so there is no room for interpretation.
Following these tips stated above will help you become a great landlord and ensure you cover all bases before you move forward.
Looking to buy or sell your home on Staten Island? For all your real estate needs, look no further than Tom Crimmins Realty! Give us a call at (718) 370-3200, and we can provide you with professionally-trained agents who are flexible to all that you’re looking for!
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