Renting Out Your Property – Benefits and Requirements
Owning a property that’s in good order – and keeping it that way in the long run – as well as determining how best to profit from your rented property will establish the level of success you can reach when you plan on becoming a landlord.
Should you actually consider this path? That normally depends a lot on the laws associated with the state in question, and when it comes to South Florida, the law definitely gives landlords a lot of freedom and advantages.
Of course, it’s also extremely important to have the right mindset that will allow you to be successful as a landlord. How do you feel about strangers living in your home? Are you good at solving technical issues and keeping track of the financial and tax related issues associated with renting your property?
You will have to ask yourself all these questions and consider your endeavors seriously before deciding on whether the lifestyle and responsibilities of a landlord are really for you.
Financial Estimates and Calculations
South Florida is considered to be a ripe place for making some good real estate profits with rental properties. That is a promising prospect, since probably the most important aspect of managing your rented property is having a firm grasp on finances.
Here are a few useful tips to consider about this:
- The first step is to make accurate calculations of just how much it will take to keep the home up and running. This includes mortgage, bills, utility payments, home insurance, maintenance costs and any other important services that require ongoing expenses.
- Make a detailed plan considering all the things that could go wrong and estimating the minimum profit you could obtain from a certain rent amount.
- In order to ensure compensation for any damage, consider asking for a security deposit upfront. As a landlord in the state of Florida, you’ll have 15 days to return this amount or provide a written notice explaining what damages you had to retain part of it for.
- Apart from issues such as deducting interest on mortgage payments and real estate taxes on your rental property, you should also take into account things such as passive activity loss rules and deductible repairs for fixing floors or gutters. Having the right information about these things can help you save a lot of money.
- Finally, don’t forget to look up similar properties and how much rent tenants in those areas have to pay before you determine the exact amount you’d like to charge.
Observing the Law
The stress and uncertainty that comes with renting a new home can be avoided by researching the laws that are in effect in South Florida with regards to tenants and landlords.
Signing a lease in order to rent a home, for instance, is not a legal requirement, and as a landlord, you have the right to ask for the amount of rent you want.
Also, there are legal matters in place with regards to matters such as gaining access to the rented area of the home, eviction or the act of selling the property at a certain time.
Written notifications will be required before you take action to evict tenants for failing to pay the rent or in case of other reasons when they do not comply with the requirements of the contract.
Also, you do have to respect the privacy of your tenants, but at the same time, you will be able to visit and inspect the property periodically, in case there is an emergency or when you’ve been repeatedly denied entrance.
Property Maintenance
Maintenance is another tricky aspect of becoming a landlord, especially if you’re not used to DIY repairs. If you are, then you’ll probably have no problem fixing minor leaks or handling other small repairs, however, for serious issues, you will need to contract a professional.
For this purpose, it’s a good idea to look up electricians, plumbers or roof repair services, even before renting out your property, and prepare an emergency service list for your tenants in case something goes wrong when you’re out of town.
After doing a bit of research, you may find that a lot of services will even provide you with discounts if you turn to them when it comes to taking care of ongoing maintenance tasks.
Where to Start
The best place to start is to determine exactly what types of personality and lifestyle you would most want your tenants to have and proceed in turning your property into one of the most suitable choices for them.
After that, the screening process can begin, and you can start interviewing new tenants as quickly as possible.
Determining a clear set of criteria according to which you will screen your new tenants and writing down your policy will show professionalism and allow you to better organize the selection and interviewing process.
Even though it won’t be easy to avoid all the problems associated with renting out your home, Florida law is at your side in terms of agreement flexibility, property access and the rent amount you can ask for. Therefore, it shouldn’t be too difficult to form a strategy and come up with clauses that will be beneficial to tenants, while ensuring that your rights as a landlord are supported.
With guidance from our Realty45 Inc experts and the observance of all the aspects presented above, you’ll find that you can quickly be on your way to obtaining good profit from renting out your South Florida property.
