OfflineI am asking this question because I don't know for sure what all is involved. I know from renting myself that they would be responsible for leaky pipes, appliance malfunctions and things like that right... what about landscaping? I would be responsible for that if I had tenants living in a property I own correct? Is there anything besides the obvious that other landlords can tell me about. I am just trying to figure out if I have the time, equipment and money to do these things or if I should just stick to wholesaling for now. Thanks I appreciate any advice!
Kai
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Money won't fall into your hands, you have to earn it!
Kai,
Dean has a pretty cool rental agreement in Forms and Docs. I used it for my new tenants (with a few modifications). The important part for me starting out was the AS IS statements. Dean has some excellent advice in his book BARM chapter 19.
I bought an 8BR duplex, without a whole lot of time to fix it up right now. It is right next to the university in Bemidji, so it was easy to find renters. I told them rent would be cheap now, but would be going up in May (after the school year and their contract is up). The previous owner was charging $800/mo. INCLUDING heat (which is not the best situation for a landlord in N MN. After all expenses though (PITI), I will be clearing at least $200/mo.
When May is done, I'm taking heat out of the rent, and I'll clean up the place a little. To rent it out for at least $800 plus rent, the place needs to look a little nicer (paint, yard, etc.) As far as landscaping goes, as long as it is not damaging the property or unsafe to tenants (holes or water not running away from the building), it is not necessary to do any landscaping. A nice yard is attractive to potential renters.
As long as renters move in, make sure they understand they are renting the place AS IS, and anything beyond that needs to be in writing. Then you are not obligated to improve the look of the place until you are ready. Function as well as safety, as you know, is a different matter.
God bless!
Andrew
"Be very careful, then, how you live- not as unwise, but as wise, making the most out of every opportunity..." Apostle Paul writing to the church in Ephesus
My tenants are responsible for maintaining the yard (except for something like perhaps cutting down a dead tree, or something).
If you find good tenants, most will do small repairs on their own. I try to rent to someone who seems somewhat handy.
My last house that I rented in summer was in such demand that my tenants offered to hire someone to paint the whole inside as well if I chose them. I allowed them to pick colors as long as they were not too crazy and they ensured me they would save enough for touch up.
You just have to be mentally prepared to always be "on call" as a call can come anytime (unless you use a property manager). I have a very handy significant other or else I would probably think seriously about a propery manager or atleast have a better list of repair people to call.
Good luck.
"Whether you think you can or can't, you are probably right" Henry Ford