There are 3 kinds of owners: DIY, Accidental and Investors
DIY: These owners either over invest in their property and are not able to recoup their investment, rent to friends and family without proper legal covering, or fall victim to scams. And find they need help.
Accidental: A property owner that inherits a property due to family or needs to place a family member into another living situation and needs to rent their property out to pay for it. These owners need to make sure they are covering all their assets as well as the interest of their family.
Investors: Those who have rental property and want to make a return on their investment. This type of investor wants to be a hands-off owner and always protect their investment.
All owners can fall into pitfalls though and here are a few ways to get out.
- Make sure your legal documents are up to date.
- Get legal advice from a property management lawyer.
- Make sure your lease is up to state legislative codes.
- Watch and make sure you are involved in all city council meetings in your property area.
- Maintain a watchful eye on the property to make sure residents have not moved in other folks
- Be aware of all rental increases allowed by law according to your city/county/state.
- Make sure all maintenance is done by a licensed, insured contractor (if someone is not and they work on your property you are liable for more than just their work).
- Make sure tenant renewals are handled correctly each year, and in compliance.
- Make sure that you are correctly charging utilities if they are charged back and keeping annual true ups.
- You are following the law when it comes to collecting rent.
It can seem like a lot, or you may decide that you want to be an investor. This is where you sit back and collect your check and leave all the above to a property manager.
