Rental homes are a great source of passive income. Owning a rental home can be a challenge but it can also be a joy as long as you have the correct help in property management. Here are some things to be ready for when you get your first rental.
Murphy’s Law Is Real
Murphy’s Law says, simply, that anything that can happen will happen. Many people interpret this as “anything that is bad that can happen will happen.” Essentially, this law states that you should be prepared. Make sure that you’re ready for good and bad surprises when it comes to the rental process. Things will break, repairs will need to happen, and you might run into rent problems. Come up with a plan for emergencies ahead of time. That way you won’t be taken by surprise.
You Need Insurance
Make sure that you have rental property insurance. A good property manager will advise you on the best insurance for your situation. Having rental property insurance that covers you and your renters is imperative.
Taxes Are Coming
Don’t forget to budget for extra taxes. Your property taxes for the rental home or apartment will go up as it’s not your primary residence. Consult an accountant when managing the finances for your rental home and when dealing with the taxes associated with owning one or multiple rental properties.
There Will Be A Lot of Phone Calls
Between communication with your lawyers, property management staff, accountants, and repairmen, there will be a lot of phone calls. Set hours that you’re available to help manage your time and set boundaries for your tenant. Enlisting your property manager to take emergency calls outside your availability window will help make the process easier on your mind and your health.
Routine Maintenance Doesn’t Stop
Even though you’re not living in it, a rental will still need regular maintenance. This might be handled by someone you hand-select or a vendor that your property manager has on staff. Indoor and outdoor paint, gutter cleaning, yard work, and air filter replacements are just a few of the chores that have to be done in a rental property.
If you need help navigating the rental process, find a qualified property manager. A good property manager will be essential in the rental process. The team at Bricks & Mortar Real Estate have capable property management staff that are happy to help you in this process. They can assist you in all your needs as you work through renting your home, apartment, or business space.