It is usually not difficult to become a landlord. A person who wants to be a landlord usually only needs a rental property and a lease form to document the rental agreement in writing. A landlord can rent out either residential or commercial space. In some cases, a person may own multiple properties and rent out both commercial and residential spaces.
A person who wants to become a landlord should usually do some research before getting started. He’ll usually look into local and national laws that govern landlord-tenant relationships, for example. These laws, for example, address the amount of money a landlord is permitted to collect as a security deposit, the types of background checks he is permitted to conduct when selecting a tenant, discrimination, and legal methods for dealing with an unsatisfactory tenant. The rights and responsibilities of a landlord are usually covered by such laws.
It is critical for potential landlords to be aware of the law and to take it seriously. Some landlord-tenant blunders can cost a landlord a lot of money. If a landlord fails to return a former tenant’s security deposit within a certain period of time, the tenant may be entitled to additional monetary compensation. Discrimination, for example, has its own set of penalties. A lawsuit could be filed if you refuse to rent to a minority or a family with children.
Some would-be landlords already have a rental property they want to rent out. Others may buy property with the intention of renting it out. In either case, anyone interested in becoming a landlord should research local building codes and requirements to ensure that their rental property is up to code. A landlord may even be required to pass an inspection before renting his property in some areas. In other cases, tenants may sue their landlords for code violations.
A person who wants to become a landlord should think about insurance as well. He might benefit from seeking assistance from a local insurance agent in determining which types he requires. He may require his tenants to obtain renter’s insurance to cover their personal property, depending on the laws in his area. However, in the event of an accident, fire, or other unforeseen circumstances, this may not completely absolve him of liability.
After learning and adhering to the legal requirements for becoming a landlord, a person can set a rental price for his property and begin advertising it. He can choose one after screening applicants and have him sign a lease for the rental property. Most landlords also require security deposits from new tenants to protect against nonpayment of rent and damage to the rental property caused by the tenant.