In essence, by becoming a landlord you are operating a business, making major decisions which can affect your family, setting and adhering to a budget, and spending time overseeing and maintaining the property. For a period of years, at least two and more likely five, you will be employed as your own property manager. You must then find a steady flow of good tenants, draw up leases, collect rents, make repairs, keep accurate records re: income and expenses, file taxes, obtain permits, find suitable insurance, and establish a workable relationship with your tenants.

You must also know–and follow–federal, state, and municipal health and safety codes and landlord/tenant rights and responsibilities. Simply put, your responsibilities as a landlord include the following:

• Make and keep property habitable

• Make and pay for repairs arising from ordinary wear-and-tear.

• Refrain from turning off utilities

• Provide written notice in the case of transfer of ownership

• Comply with statutes involving discrimination

Basic tips for becoming a successful landlord include:

• Have a carefully written lease, one that will stand up in court if disputes with your tenant cannot be resolved. Be specific; who mows the lawn/ who disposes of trash? Who pays for what?

• Know the law!!! Both you and your tenant have rights and responsibilities, and you need to be aware of all of them.

• Establish a friendly, fair, but firm relationship with your tenants. Treat them with respect and be forthright about your expectations.

Investing in Mobile Eastern Shore real estate has quite a few tax advantages, such as mortgage interest and property tax deductions, operating expense and travel write-offs, and the depreciation factor. Because you will be dealing with so many possibilities, it is a good idea to consult your tax attorney or CPA to avoid complications and ensure your highest deductible amount.

Undaunted? Still hoping to become a landlord of your Mobile Eastern Shore real estate? Make sure you cover all your bases, do adequate research, and find a spirit of adventure–and then, GOOD LUCK…or contact us a call for some help!!

Below are some items to think about, courtesy of BankRate.com, before deciding to become a landlord:

• Mortgage payments must be made regardless of if the property is inhabited.
• Costly repairs and maintenance work cannot be delayed if they inconvenience the tenant.
• Disputes with tenants could require legal representation and legal fees.
• There are many costs involved in renting a home – it is recommended that landlords budget 25-30% of the rent to be used for maintenance, repairs, or emergency. This should be a key factor when deciding how much rent to charge in order to break even.

In addition to extra tax advantages (on top of the regular deductions of mortgage interest and taxes), renting out your property might also allow you to continue to build equity in your old home at the expense of the renter.  You might even be able to make a profit from the rent, if your expenses are low enough!

If you are interested in buying or selling Mobile Eastern Shore AL real estate, please call me 866-560-7474 or visit JudySells.com.  Request a relocation package!

Below are some items to think about, courtesy of BankRate.com, before deciding to become a landlord:

• Mortgage payments must be made regardless of if the property is inhabited.
• Costly repairs and maintenance work cannot be delayed if they inconvenience the tenant.
• Disputes with tenants could require legal representation and legal fees.
• There are many costs involved in renting a home – it is recommended that landlords budget 25-30% of the rent to be used for maintenance, repairs, or emergency. This should be a key factor when deciding how much rent to charge in order to break even.

In addition to extra tax advantages (on top of the regular deductions of mortgage interest and taxes), renting out your property might also allow you to continue to build equity in your old home at the expense of the renter.  You might even be able to make a profit from the rent, if your expenses are low enough!

If you are interested in buying or selling Mobile/Eastern Shore AL real estate, please call me at 866-560-7474 or visit JudySells.com.