How much will your home rent for?
By Michael Roberts- September 13, 2011
Brought to you by North Lake Real Estate, LLC and Austin Property Management Pros
How can I create additional income through purchasing real estate? If you have not asked this question of yourself, now is the time to do so. Once you have asked this question, the next question to pose is how can I do this without creating a second full time job for myself? This is where the following five tips will prove helpful in your decision making process.
Positive Cash Flow is not just possible; it’s a must in today’s market. When purchasing investment property you must analyze the potential cash flow. The factors you must consider are as follows;
Consider using a reliable property management company. Most investors do not realize that being a landlord can turn into a second job. By utilizing a professional property management company you have the connections that they have automatically. What that means is pre-screened and reliable vendors; contractors, plumbers, electrical workers, as well as other handymen are at your disposal. A quality property management company will reduce your problems and increase your profits.
Tip 3: For Your Protection
A rental contract protects you. In every contract there should be a late payment clause that is proportioned to the rental amount so that it is valid by law. In addition to the late rent clause there needs to be other protection in place for the owner’s peace of mind. When the contract is not worded properly it can be deemed void in a court of law. It is vitally important to have a company with the experience as well as knowledge to handle a potential law suit before it occurs. A solid legal department is a must when choosing a property management company. Your Austin Property Management Pros needs to be able to represent you on any evictions and guide you through rental and eviction processes.
Tip 4: Screening Tenants
Screen potential tenants properly. It is better to leave your home vacant a month longer in order to find the right tenant than to choose the wrong tenant. We utilize a detailed rental application that obtains any and all pertinent information needed for screening tenants. An eviction can be a nightmare. Waiting an extra month for a quality tenant is inconvenient but not a nightmare. Finding a tenant who fits you and your home is done through the leg work of reviewing their rental history, checking their background, payment history, employment verification, as well as credit to ensure an informed decision is made before the rental agreement in signed.
Tip 5: Understand the Process
Know what you are getting into. Understanding what the process of owning rental property entails is very important as well. You must know the tax benefits. Also, it is important to anticipate problems and solve them ahead of time. By understanding the process you can be better equipped to keep track of what is going on with your tenant as well as your property management company.