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Many of us have a rental or two, or have contemplated the idea of picking one up. It can be a great idea if you know what you are doing and prepare yourself to be an objective business person, and not let emotion get in the way of common sense. Personally, I have a few rentals and find them to be a great part of my investment portfolio. I have also picked up some rental management forms(rental agreements, condition reports, notice of change forms etc.)that I really like. If you are interested in what I have give a call, I am happy to share. I picked this list up awhile ago, and I think it makes a great reminder:
Landlords' 10 Biggest Mistakes
1) Being in a hurry to fill a vacancy and not properly checking tenants' credit history, references, and background.
2) Not getting all the important terms of the tenancy in writing.
3) Failing to establish a clear, fair system of collecting, holding, and returning security deposits.
4) Not staying on top of repair and maintenance needs, and failing to make repairs when requested.
5) Letting your tenants and property be an easy mark for a criminal---or renting to one.
6) Violating a tenants right to privacy.
7) Failing to disclose and remedy environmental hazards such as lead, asbestos, or radon,-----even those you didn't cause or know about.
8) Hiring the wrong manager, or providing inadequate supervision.
9) Having inadequate liability and other types of property insurance.
10) Using a lawyer when you could do it yourself. With no disrespect to my attorney friends.
With attention to detail, and/or a good property manager, rental property can be a profitable investment. I look at my properties as part of my retirement fund, a way to stay busy and have added income after my career at RE/MAX is over. I might add, this is a great time to consider an investment in some rental property, prices are right and the need for rentals is strong throughout the Flathead Valley. There are also some great tax benefits, check with your accountant as to how you can take advantage of this opportunity to save paying taxes. |
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