Investing in real estate can seem like a great way to get rich, and some people have done so. However, a lot of investors aren’t prepared to be good property managers. The following tips from Real Estate Agents in Memphis TN can help property owners get a good return on their investments and avoid some of the most common beginner mistakes.
Know The Law
First and foremost, landlords need to understand the local laws that impact rental properties. The law stipulates exactly what the landlord’s responsibilities and rights are regarding the property, and it also details the tenant’s rights and obligations. A local landlords’ association can be a great information resource for anyone who is new to the business.
Keep Up With Maintenance
It’s the landlord’s responsibility to keep the property in good and safe condition. Failure to do this leads to unhappy tenants and possibly even lawsuits. Happy tenants who see that the landlord is fulfilling his or her responsibility are likely to stay put and pay reliably. An alternative to committing time and money to property maintenance is to hire a local property management company, like Advantagepropertymgmt.com.
Screen Tenants Carefully
Of course, the goal of owning an investment property is to keep the rent coming in. However, bad tenants can end up being costly and a lot of trouble. Landlords should always run credit checks and call references. Experts recommend checking out the prospective tenant’s current address to see what condition the home is in.
Require A Bank Deposit
Instead of collecting rent by check every month, consider making it a requirement that tenants pay by depositing or making a transfer directly into the landlord’s bank account. This can avoid the excuse of a check getting lost in the mail; the landlord can know instantly when the check was deposited and the tenant will also be able to keep the deposit slip as a receipt.
Making sure to buy the right insurance and consulting with a lawyer about the lease are two final tips. According to Real Estate Agents in Memphis TN, investing in real estate can be lucrative, especially if home buyers choose wisely and get the right help and advice.
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