Owning rental property can be very lucrative, but quite intimidating if you don't know what to expect. Owning a rental property in Mountain Home, Arkansas can be very profitable, especially during the summer. Have you ever rented an apartment or house? Do you remember having to contact your landlord whenever there were problems? Think back to how they responded and how it made you feel. Being a good landlord is not only important for the tenant, but for you the homeowner as well. Typically a tenant who feels well provided for will in turn take better care of your home. They will alert you to potential problems more quickly, which depending on the problem could save you big money in the long run.
Becoming a landlord is a big responsibility and can be a good source of income. If you've found a great deal on a house that you'd like to turn into a rental property there are some things you should take into consideration before looking for tenants.
1. Are you looking to be a hands on type landlord, or will you have a person you go to for maintenance issues? If you're the type of person that enjoys home repairs and improvements, you may want to do these things yourself. If not, you need to find a reasonably priced maintenance person you can trust to do repairs that will undoubtedly come up and just general maintenance on your rental property.
2. What are your terms going to be? Will you rent anually, monthly, as a vacation rental? You should have a certain level of expectations from your tenants and make them aware of those up front. When is rent due? When is it considered late, and will you charge a late fee? Will they be responsible for lawn maintenance and to what level? Will you allow pets? Will you allow smoking? Will your tenants be able to make personal improvements (such as painting rooms) without losing their deposit? How long is the lease going to be? All of your terms need to be clearly lined out in your lease document so there are no disagreements later on.
3. Do your research and make sure all your practices are legal. You want good tenants, but you don't want to accidentally discriminate against someone and end up in legal trouble. There's nothing wrong with being picky about who rents your property, but you want to make sure you are following the laws. Have your lawyer look over your rental agreement, and fix any loopholes that could be used against you. You also want to make sure you have adequate insurance on your property and that your tenants will carry renters insurance to protect their belongings. Your insurance agent can assist you with exactly what you need.
There are many things you need to do before deciding to become a landlord...these are just a few to help you in the decision making process. After all is said and done, hopefully you have found a quality, responsible renter who will take care of your property like it is their own and follow the rules and regulations you set forth in your agreement. Treat your tenants how you would like to be treated, and you should enjoy a profitable relationship for years to come.
If you are interested in purchasing rental property, or renting out something you already own in or around Mountain Home, Arkansas, feel free to contact Joey at 870.421.1233.
Just getting started in the home buying process? Check out our Free Guide to Buying a Home in Mountain Home, Arkansas!