Smart people often decide to become landlords when they are moving out of their home. They would love to turn their home into an income-generating asset because the extra money coming in each month sounds like a great idea. And they know that real estate investors can build wealth through their investments in single-family homes.
All those thoughts are good. They are also true. But there are quite a few other thoughts that need to be presented and considered. Thinking about the responsibilities and obligations of a landlord isn’t as interesting as contemplating future rental income. But it’s a critical exercise for decision making.
Things to Consider Before Leasing Your Home
Prospective tenants you meet when showing your home for rent may be on their best behavior. Ask anybody who has rental property and they will tell you the same thing – people who want to rent your home will say and do all the right things to impress you. They will be very polite and cooperative. You might like them and believe they are going to be ideal tenants.
It’s easy to think you don’t need a background check or credit check because they seem so nice. Resist the urge to rely on your first impression and get check out all applicants who want to lease your home. You may be surprised by what you see.
Once you have tenants living in the home you may be tempted to think they will care for it as you have cared for it. Since they are nice people, they will certainly take care of their home. That is just what nice people do, right?
Sadly, the answer to that question is No. Lots of nice people are very messy and careless with a leased home. They do not own it and they do not care about it. They believe a landlord must have plenty of money to fix things, so they don’t have to worry about damage or repairs. It’s not their home and it’s not their problem.
A background check may reveal a suspicious pattern of behavior if the applicants have moved around a lot. Making a call to their previous landlord is another way to find out if they are good tenants.
In the Event You Choose to Sell Your Home
Some of the smart people contemplating the new responsibilities that come along with leasing out their home decide they are not cut out to be landlords. This conclusion is often very wise. Although a homeowner can hire a property manager to take care of all the details, paying their management fees reduces rental income significantly.
If no longer plan to live in your home, and you choose not to rent it to tenants, then you will want to sell your home fast and get on with your life. Professional real estate investors at We Pay Fast will make you an offer and take care of all the expenses, so call us at (405) 521-1807 or email us at [email protected]