If you own a home that you are considering renting out to tenants, there are many things that you should consider before actually doing so. Renting a property can be a nightmare for you if you don’t know what to expect. You may want to reconsider your decision to rent your home out after you realize exactly how much work can be involved in the process of doing so. You don’t just have to consider what type of people you want to rent to.
Things you should know before you become a landlord:
Repairs- You will be responsible for all repairs. If something goes wrong with the roof, you have to have it repaired. If something goes wrong with the plumbing, you have to take care of that as well. If the tenant makes a mess of the house and then moves out without repairing the problems, you will also have to make those repairs before you can rent or sell the house. This can be very costly and you have to account for the potential problems before you rent.
Evictions- If you have problems collecting rent from a tenant, it could be a little more difficult to get them out of the house than you think. The only thing they have to do is make sure that the rent is paid before the eviction takes place and it is canceled. This is a good thing because it protects the tenant, but it can get old for the landlord that has to deal with it all of the time. It can be very time consuming as well because of having to go to court and other issues that have to be dealt with.
Laws- The laws concerning rental properties are very strict and you have to follow them closely. There are certain things that you absolutely cannot do or you can be sued. For instance, you aren’t able to just walk into the rental home in the state of Maryland without first getting permission from the tenants. You cannot have the electric or any other utility turned off simply because you want to get the rent money from the tenants. You have to take it to court if your tenant is behind on their rent.
Appliances- If you rent the home with the appliances, you are responsible for the repairs and the replacement if anything goes wrong with them. The only way to avoid this is to make it clear in the lease whether these appliances are part of the rent payment or if they will be the tenants responsibility if something goes wrong.
Once the Tenant is in- Once the tenant is in, you may run into trouble and you may be stuck with them for the duration of the lease. If you still wish to rent your home, consider doing a month to month lease which will make it easier when the time comes to get the tenant to leave. If you have a year long lease, you will have to wait the full year before you can make the tenant leave as long as they are abiding by the terms of the lease. There could be several different things that a tenant can do while they are renting your home that might convince you that you chose the wrong tenants. The problem is, if you break the lease you are liable to the tenant.
There are obviously good things about renting your home instead of selling it. Part of the reason that many people are renting out their homes instead of selling them is that the real estate market is horrible at this time. It is a good idea to seriously consider all the possibilities before you get set on renting out your home. It could be the worst mistake of your life.