Frederick Homes for sale have been losing value since 2007, with an overall 40% drop county-wide in the last 3 or 4 years. Many homeowners find themselves unable to sell without forfeiting a lot of equity. That fact, coupled with higher rents, have created a new type of real estate investor: the accidental landlord. There is a lot to consider about being a landlord.
While rents are on the rise across the nation, remember that, just like sales, there is no national real estate rental market. All real estate is local, and the most likely way to success in the Frederick rental market is to know your marketplace and what you can expect to charge for a fair rent in your area.
1. Study local classified ads, and scour the Internet for rental rates. Seek the advice of a Frederick Realtor who works with rentals.
2. Get as much information as you can on your market, and then set realistic expectations.
3. An experienced Realtor can help you determine rental demand in your area. Consult with the REALTOR who helped you purchase your new home.
4. For many, a professional property manager might be the way to go. It could cost you the first month’s rent and about 10% of your rental income in many cases, but the time, energy, and major headaches you could save may well be worth it in the end.
5. Definitely consult with a real estate lawyer. Even though many office supply stores and a number of websites exist to provide legal documents, like rental agreements, a few hours with the right attorney could save you from expensive mistakes.
6. Use a CPA or Financial Planner. There are many write-offs that require record-keeping, planning and a knowledge of local state ordinances and federal laws.
7. If you don’t use a property manager, consider a maintenance expert. If you are like many who are not necessarily handy it might be best let pros do the job. If you can handle small repairs yourself, fine, but don’t let a small problem turn into something major.
One of the major issues to consider about being a landlord, is the problems that come when renters don’t take care of rented property. With this in mind, here are some important steps to take before your new tenant moves in:
8. Attract tenants with ad phrases such as “good credit and references,” “no pets,” “no smokers,” etc.
9. Make a thorough application process. Be sure to require proof of identity, past addresses and landlord contact information, employment information, references, how any people will be living with the applicant, how long they plan to occupy.
10. No matter how nice your prospective renter appears, check references thoroughly. Call previous landlords to ask about on-time payments and property upkeep they experienced. Were the tenants loud or troublesome. It's easier to avoid renting to a bad tenant than it is to remove a bad tenant.
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What's My Home Worth? Search the MLS for your home?
The Highland Group
Chris & Karen Highland * 301-831-9947
Turning Point Real Estate
email us: isell4u2@msn.com
Text Us: 301-401-5119
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