How to Start out As a Landlord: 8 steps (with pictures) - wikiHow

How to Start out As a Landlord

from wikiHow - The How to Manual That You Can Edit
Have some extra money and not sure where to invest it? Have you ever thought about becoming a landlord? You couldn't pick a better time to start on this rewarding career choice. The renting market is booming and properties are current cheap to buy. A landlord is not a easy career choice, there are times when it can be a lot of work, but with time and some effort, it can be a rewarding investment.

Steps

1. First you need to find a property. While renting is up there are still some places with no renting market. This can be the result of several things such as too many apartments already, or it could be a popular area for new families to buy their first own. Note that a property in a good area might be more money but will attract better tenants who will be willing to pay more money.
2. Once you have the property its time to make it ready for your first tenants. You'll want to make sure everything is up to code. Pick fairly neutral colors when decorating. You don't want the place to look like a hospital but you also don't want to scary a way tenants with bright colors.
3. Next you need to create an application. There are hundreds of free ones online you can print off and adjust to meet your needs.
4. While your printing out your application you should grab a lease as well. Spend some time decide what things you are firm on, and what you are willing to negotiate. Consider things like pets, early lease, repairs and smoking.
5. Now its time to go looking for tenants. The are several ways you can advertise for apartments- web,papers, signs, even the radio. The more people apply, the better options you have.
6. Once you have a stack of filled out applications its time to start reviewing them. There are tenant screening sites all over the web to help you. It generally a good idea to pick a site that is BBB certified like http://www.tenantverification.com and http://www.atenantscreen.com. Less risk of them being a scam since BBB monitors and will kick any business with poor conduct or lots of complaints.
7. After you have narrowed down the field based on prior evictions, criminal records and credit it is time to start the leg work. Call potential tenant's previous landlords, bosses, and run a google search. You will be amazed by what you can find and by what some people might pull.
8. Once you got your tenants, maintaining property will be your main focus. If you don't have the spare time and are earning the money, you may want to invest in a property manager.

Tips

• Specify in you lease when the rent is do and how much the late fee is.
• Take pictures of the apartment or house before the tenant moves in.
• You can learn more about landlord responsibilities at http://www.tenantsinfo.com.
• Tenants who have been with their job for longer periods of time are less likely to lose their job.
• Insure that everyone living in the apartment over the age of 18 is on the lease.
• Look for a tenant who makes 3 times as much a month as what you are asking for.

Warnings

• Be caution around sob stories. They are often used to guilt landlords into renting to a risk tenant and are often a scam.
• Identity theft is rampant. Make sure to compare ages and description to reports.
• In the case of eviction, make sure to follow all legal procedures.
• Keep paperwork for tenants until 3 years after they move out.

Article provided by wikiHow, a wiki how-to manual. Please edit this article and find author credits at the original wikiHow article on How to Start out As a Landlord. All content on wikiHow can be shared under a Creative Commons license.