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Owning rental property can be a great source of passive income, but you’ll still have to take certain measures to keep that property profitable. One of these important goals is to reduce the amount of time your rental unit is vacant. 

While a real estate agent can help you find good tenants, you should know how to prepare before you talk to a realtor.

Understand How an Agent Differs from a Property Manager

While both an agent and a property manager will usually charge the equivalent of one month’s rent, the services they perform will be different. Both the agent and the property management service will market your property and vet applicants, but that’s usually where the agent’s services end. 

A property manager will provide extra services for additional costs. They can help you collect rent, address tenant issues, and maintain your property in good condition. Whether you need these extra services or not will determine which professional is better to hire. (more…)

Allowing pets in your rental property will make it easier to find and retain tenants. Since a large portion of people are pet owners, making this allowance will help you stand out to those potential renters. 

While you may want to allow pets, you should also plan for covering the wear and tear damage that comes along with having pets on your property.

When You Can’t Charge Pet Fees

The Humane Society shares that a property owner can’t discriminate against an applicant who has a support animal. This includes emotional support pets as well as animals trained to help people with physical disabilities.  (more…)

When you take on a new tenant, one of the first things they’re likely to ask about is painting their rental unit. Most tenants want to feel as though the unit is their own, and choosing the color of the walls is one way of doing that. You can handle this situation better by preparing a response you can give to every tenant. 

When Must the Landlord Paint Each Rental Unit?

There are situations in which you’re required by law to repaint the walls in your rental units. Unless you work with a property management company, you may need to hire painters to do this for you. (more…)

As a property owner, it’s important to have a clear grasp of your legal responsibilities versus those of your tenants. Looking at how landlord and tenant laws in Maryland address repairs and maintenance will help you make this differentiation. A little research will keep you from wasting time and resources on repairs that are your tenant’s responsibility. 

What Is the Landlord’s Legal Responsibility?

According to the Baltimore City Department of Housing & Community Development, a property owner must maintain a safe and habitable dwelling for their tenants. This means the landlord is responsible for repairing issues that pose a hazard to the tenant, including faulty wiring, malfunctioning appliances, or black mold. (more…)

Paying rent on time is one of the most important qualities that landlords look for in tenants, as late or missed rent payments can significantly affect the landlord’s personal income as well as their ability to properly manage the property.

However, that doesn’t mean that landlords are totally unforgiving when it comes to tenant rent payment issues. Sometimes, extenuating circumstances can cause tenants to have to delay a payment, which is why many landlords have a rent grace period outlined in their lease agreements.

How Long Is a Rent Grace Period?

The length of a grace period that tenants are allowed before late fees are uncured will vary from state to state. In some states, there is a defined grace period that all landlords have to abide by. In other states, landlords are allowed to set their own grace period. However, rent grace periods are rarely longer than five days. (more…)

One of the biggest priorities for property-owning landlords is making sure that your property is being well taken care of by your current tenants. Additionally, it’s important to regularly check for any issues that could be affecting your tenant’s safety on the property. 

That’s why property inspections are a crucial part of a landlord’s job. Generally, when a tenant is currently renting the property, landlords won’t perform property inspections unless the tenant has specifically asked for one due to an issue or the landlord has cause to believe that an issue might be occurring. 

If a tenant hasn’t had any issues with the property and is on time with rent consistently, many landlords will continue to re-sign the lease year after year without performing an inspection in between lease renewals. However, even with overall good tenants, the landlord should have an accurate picture of the state of the unit on at least a yearly basis. (more…)

As a property owner, it’s important to address various potential issues in your lease or rental agreement to avoid misunderstandings. One issue you should consider is whether you’ll let your tenants sublet their rental units. While some landlords allow this practice, there are several good reasons to prohibit subletting in your lease. 

Know Who’s Living on Your Property

When you allow your tenants to sublease their rental units, you’ll have to rely on them to vet the applicants. They may not conduct the same background checks or follow the same evaluation process that you use as the property owner. This can leave you with a tenant you don’t know and one who doesn’t meet your standards. (more…)

It’s a good idea to have every tenant sign a detailed rental agreement. When you write the agreement, there are some specific points you will want to include to better protect your property and yourself. These terms will affect your relationship with your tenants and how they use your property.  

1. Specify the Rent

Your rental agreement should specify how much you’ll expect your tenant to pay each month and how you will collect the rent. This clause should also mention any late fees or penalties that you will charge for late or delinquent payments.  (more…)

A rent roll is a record of your rental property’s history. It’s used for a variety of purposes. It tracks rental payments, late fees, lease terms, and due dates. The rent roll is effective in helping you make sure your property continues to generate enough income to remain profitable.

How Will a Rent Roll Benefit You?

A rent roll separates the rental income your property generates from each rental unit. For example, if you own a multifamily home with three rental units, you’ll have one entry for each of the three units. 

The rent roll also provides a grand total that tells you how much of the income the entire property generates.  (more…)

If you’re new to rental property ownership, you might be unfamiliar with the Section 8 program. This program is federally funded, but managed by local governments to ensure low-income families can obtain affordable housing. 

In addition to helping those families avoid homelessness, Section 8 vouchers also benefit a property owner who rents to low-income families. 

Lowering the Risks for Unpaid Rent

When screening Section 8 applicants, it’s still important to run credit and background checks. Since the Section 8 program only pays a portion of a tenant’s rent, you will have to rely on the tenant to pay their out-of-pocket portion of the rent on time. Fortunately, you can trust that the portion covered by government subsidies will arrive on time. (more…)