What To Think About Before Becoming A Property Owner
Wanting to be a property owner is an excellent goal to have. There are a lot of opportunities out there for you to invest and make money by buying up real estate. However, it’s a more complicated and tougher job than you may think initially.
There’s quite a bit to think about before you decide to become a property owner or landlord. The following tips will help you know what to focus on and consider before you decide to make a purchase and move forward with this role.
Your Time & Finances
Becoming a landlord and owning property is a big commitment and not a job you can step away from whenever you choose. All that occurs is on your shoulders and you have to be prepared to handle all types of situations as a property owner. You should consider your schedule and how much time you have to give to this endeavor. You’ll need to be available when the tenants require assistance or if anything goes wrong while you’re the owner of the property. It’s also a significant financial investment and one you want to make sure will pan out properly if you’re trying to make money off of it.
Seeking Legal Advice
You might have a lot of questions as a new property owner. Therefore, you should also think about seeking legal advice from an experienced and well-respected attorney such as Jacob Kupp that specializes in commercial real estate and can advise you on each facet of buying a new building. You’ll also want to confirm your lease is valid and meets the state and local requirements. You can save yourself money and headaches down the road by involving a lawyer right from the start.
Another task you’ll want to think about before becoming a property owner is learning and knowing how to screen tenants. You’ll want to make sure the person or persons are not only personable and seem like good people but that they meet certain requirements. For instance, you should ask for proof of a steady job, a credit report, and references from previous landlords or employers, to name a few. You need to be able to decide if the renter is credible and will make timely payments so that you don’t run into any sticky situations or put yourself in a tough position. While going to court is always an option, it’s a scenario you want to try to avoid.
Maintenance & Making Repairs
Think about the future maintenance of the property and the fact that you’ll need to make repairs and fixes as they pop up. Get organized and figure out what you’ll be able to do yourself and line up a handyman to help you with the projects you don’t feel comfortable completing. Make sure the tenants understand their responsibility for maintaining the property and that it’s all in the lease so there’s no confusion. Be a good landlord by being available around the clock for your tenants in case any problems arise with your building that needs immediate attention.