Becoming a Landlord - Is It Right for YOU? Part I
The stock market hasn't been particularly rewarding lately, and bank interest is pitiful, so many individuals are turning to investment property (rentals) as these can return investment proceeds more reliably. Here in the White Mountains of Arizona, rental property is typically at a premium - high demand/limited availability. So, you might want to consider contacting us Find White Mountains Investment Property regarding suitable investment property. But, there are many things to consider BEFORE you think about becoming a landlord.
- Remember to buy carefully. Tour the prospective neighborhood, both during the day and at night. Why? For many reasons. During the day a neighborhood may be largely empty with residents at work, children in school. See what happens when people come home. Is it quiet and peaceful? Are vehicles parked in driveways and not lining the streets? Also, you may be called there in the middle of the night to tend to some emergency or other. If it's a neighborhood that gives you concern about going into at night, better think again. If you see more than a few For Sale or For Rent signs, that could imply a low demand for housing in the area, an area beginning to decline, or an oversupply-- consequently you may not be able to demand much for rent.
- Know your target tenant market. Families? How close are the schools, playgrounds, shopping, goods and services, medical emergency personnel, etc. The White Mountains of Arizona area is varied with some very remote ruggged property (some "off the grid") that wouldn't be suitable for families with children, single parent families, OR perhaps elderly tenants. The proposed investment property must be researched thoroughly for these considerations. It's important to work with a Realtor who knows the area and can guide your choices.
- Carefully explore and learn the rules, laws and state statutes regarding rental properties (Landlord Tenant Law), so you know how to deal appropriately and legally with various issues. In Part II of this Series, we'll discuss some of these beginning with the screening process. Because you'll need to know things like when you may and may not evict and how to accomplish an eviction; when you can and can't lock someone out of the property, among many other possible situations.