So im looking into becoming a landlord on a small home 2-4 units this spring, actually looking at another place tomorrow. What are your dis-likes, aggravations, concerns, regrets about being a landlord. Ive done a lot of searching for a place, and right situation but i really don’t know anyone with any experience. So any advice is helpful, Things to ask etc. Thanks
I own a triple. Its sweet getting paid to live there, but you do have to deal with random shit from time to time.
Refrigerators, hot water heaters, generally loud tenants - just some of the stuff Ive dealt with. Typically renting to girls is easier, they keep things clean, can have attractive friends, and generally better about paying on time because I strike so much fear into them. But they also have their own drama and slightly more high maintenance, which sucks, but again - make sure you screen the tenants well enough to gauge their character. They typically will be on their best behavior when checking out the apartment so it may be tricky.
Also, the quality of the house goes a long way. Im on the second floor, so there are girls below me and above. My ceilings are tall and dont really hear them unless they are gabbing in the front hall, so noise isnt much of a factor for me.
Again, treat it as a business. I dont plan on living in my house forever, but when I do move out, I will keep it as a rental property and use the profit towards my next mortgage. In a perfect world, I’d aquire more houses and make more dough. So, I would def do it again.
Just my .02
I own a two family and the rent payment is equal to my mortgage payment (including insurance in escrow). My fiance and I have lived essentially rent free for 5 years. If you do your taxes right and put enough money into the unit every year, you can write off all kinds of repairs on the rental unit.
I make sure to get good tenants by background checking them (i make them pay for a service that I use), also verifying employment, and calling references.
Keep an account with about ten grand in it in case anything goes wrong you can just write a check and not worry about it, also make sure you have a very good insurance policy.
Thanks guys I’ll keep all that in mind.
Luckily the place I’m looking at is completely re done and all new appliances so hopefully I wouldn’t have too many issues. But that (just in case) money is a good idea.
You think you won’t have issues, but you will. Something is bound to happen, so keep that in mind.
The best advice I can give to anyone aspring to be a landlord is to keep the place NICE! Sounds like it is already, but a nicely renovated apartment will rent every time. There are so many shit holes out there, that when people walk into a nicely kept place with newer appliances and cabinets, they are falling all over it. I normally have 3-5 people interested in any one of my rentals after 3 days of being on craigslist.
Phones making me respond above the quote, but yeah that’s why I said hopefully not many issues, but I know there will always be a few.
Is there anything I have to do downtown wise before I start collecting rent (if and after purchase). I just have no clue on the paperwork side of what will have to be done to be a landlord. I plan to ask the realtor a bunch of questions as well.
I LOVE having my rental 2unit property. In a few weeks I am moving out and into my new single family house. Once settled I will be buying 1-2 more rentals within the next year.
My best advice that I think has made owning mine a little easier then some other. When shopping I went out of my way to buy one of the “high end” examples of what was available. Yes it will be more expensive but you will then be able to charge more rent and aquire a property that probably has had much more recent updates and maintenance. I prefer having somehting that I can market at slightly higher then average rent in the area because it helps get better tenants.
Basically what TurboTSI said. I would like to also emphasize as others that the financial reward is certainly there, especially if you own the property long enough.
You won’t have to file anything with the county when you rent property. The only thin you need to do is keep track of all expenses so you can write it off at the end of the year against your rental income. Although you should brush up on tenants rights so you don’t do something wrong and get sued.
Also learn basic handyman skills, electrical, plumbing and how to unclog drains. I just did 3 drains this past month for some reason. It took some work to get them free, but having a plumber do it, it would have easily cost me $500.
alot of good info so far
What do you guys do for insurance on the houses you own?? something ive always wondered…just basic home owners insurance or what?
Good question… ?
You won’t have to file anything with the county when you rent property. The only thin you need to do is keep track of all expenses so you can write it off at the end of the year against your rental income. Although you should brush up on tenants rights so you don’t do something wrong and get sued.
Also learn basic handyman skills, electrical, plumbing and how to unclog drains. I just did 3 drains this past month for some reason. It took some work to get them free, but having a plumber do it, it would have easily cost me $500.
yeah i know most basic stuff now but i plan on taking a building trades class as well to understand whats code
My best advice that I think has made owning mine a little easier then some other. When shopping I went out of my way to buy one of the “high end” examples of what was available. Yes it will be more expensive but you will then be able to charge more rent and aquire a property that probably has had much more recent updates and maintenance. I prefer having somehting that I can market at slightly higher then average rent in the area because it helps get better tenants.
yeah i plan on doing the same thing… maybe even Corporate rentals
I have a policy through Liberty Mutual. If you live there, it’s basically just like a normal homeowners policy. If you don’t live there then you have to buy a fire policy which they rape you on. I was paying $750 per year for each property until Liberty Mutual adjusted their rates and now I’m paying around $400 each.
my landlord at school up at oswego has had 2 houses catch fire…one burnt right to the ground and the other half of it is destroyed
i figured they have some sort of special policy for landlords
that’s not that terrible
I own a 2 unit in the EV, and really cant say I have any regrets. Just keep in mind it is a business, and in many cases will be a 2nd job with upkeep, fixing things, clearing snow, etc…sometimes at inconvenient times. But I would agree with most of the advise everyone has given so far.
i own two duplexes and rent out our old house. more to come.
the biggest concern will always always always be the quality of your tenants. do a credit check on everyone no matter how trustworthy they might seem. the nicest person might have run up huge bills with phone companies and have a ton of unpaid medical bills. they will just as easily stop paying rent. you can usually get most of the important criminal info for free online or some people will be stupid enough to just tell you outright because they think it will show up in a credit report- don’t rent to these people.
hard surfaces. tile, wood. avoid carpet and sheet products- once a small spot is ruined you have to replace it all- and you should replace it all as stated above, a nice looking place does much better than a crappy patched together one.
if you don’t set up a corporation to control the property get an umbrella policy that will cover all of your stuff. if you crash into someone in your car and you don’t have a big liability policy for your auto a smart lawyer will go after all your other crap. once we started accumulating properties and bought our new house we went this route. i don’t need to get into an accident and have their lawyer look up my name at the assessment office and decide there is more to be had by going after my other assets instead of the insurance policy. next property we get i’m going to incorporate, because i’ve freaked myself out about something bad happening.
no inside furniture outside. simplest rule that will solve all sorts of possible tenant problems.
buy it outright if you can. getting it to cover the mortgage is a good approach, but if you yourself do not live there it can be problemmatic the first time there is a massive expense- like a roof or flooded apartment or if you get a bad tenant that isn’t paying and you can’t get rid of. if the rent is barely covering the mortgage you may be setting yourself up for trouble.
there is a overflow proof toilet made by penguin. they are expensive but worth every penny. some how most renters do not understand how to turn off a toilet valve even if it is only a 1/4 turn.
i could go on and on. it is fun and rewarding though and a pretty decent early retirement plan.