5 Must-Dos Before Renting Out a Property
It can be hard enough maintaining your own house in addition to a busy schedule and family life. If you choose to become a landlord with even one property, you will have to make regular financial and time-consuming decisions based on the property you own. Your time commitment will only grow larger if you own more properties (unless you hire a property manager, in which case you might save some time but spend more money).
Becoming a landlord can be a financially profitable decision, and for some, it can be a fun way to meet new people and run a business. However, landlords face numerous issues when renting out properties. Here are several things that will help you succeed when you are renting out.
1. Get insurance
As a landlord you will need hazard, fire, and liability insurance, and depending on your unique circumstances, you may need flood insurance, loss of income insurance, workers compensation insurance, or other types as necessary. As a landlord you risk being held responsible for injury to a tenant if the tenant can prove you have been negligent in maintaining the property or fixing a problem.
This is also a good reason to always do repairs in a timely fashion. For a landlord to be held responsible, the tenant must prove that it was the landlord’s responsibility to maintain the particular portion of the premises that an injury occurred on, that the landlord failed to take responsible steps to fix the problem and that the injury was foreseeable because of the condition or issue on the property, that fixing the problem wasn’t unreasonably expensive or difficult, that the landlord’s negligence caused the accident, and that the tenant was genuinely hurt.