Getting into the real estate business by becoming a rental property landlord can be a big step towards financial independence. Becoming a landlord also comes with a new set of responsibilities. While there may be overlap with the general responsibilities of being a good homeowner, it’s important to become familiar with the ins and outs particularly to being a landlord with a rental property.
Rental Property Landlords Should Know About: Taxes and Legal Issues
There are taxes that landlords are responsible for, such as property taxes and taxes on the income you receive from your tenants. While income and property taxes probably aren’t new to you, it’s important that you understand how these will apply specifically to your rental property. Additionally, there are some legal issues you need to become familiar with. These issues include acceptable tenant screening processes, protecting any sensitive data you collect, your rights regarding entering the rental property, and the ins and outs of contracts. If that sounds like a lot, it might be wise to consult a lawyer, especially when it comes to drawing up contracts.
A landlord has an obligation to provide tenants with clean and safe living conditions. This requires regular property inspections, as well as maintenance and repairs. As the property owner, you should be on the lookout for signs of roof damage. Don’t neglect the foundation, plumbing, HVAC, and electricity either. This all has to be done while staying in accordance with a tenant’s right to privacy. That means that you may be obligated by state law to provide your tenant with advanced notice of your need to access the premises. Generally speaking, entering uninvited or without prior notice is not considered a good practice for landlords.
Rental Property Landlords Should Know About: Maintaining Insurance
Make no mistake, being a landlord means being a business owner. Carrying adequate insurance to protect and secure your business and rental property is something of a business basic. Many lenders will require you to carry insurance before giving you a mortgage to protect their investment in your business. There are a lot of different types of insurance, from what’s included in an LLC, to those designed to protect your property in the event of damage or disaster. Carefully consider the risks you’re most likely to encounter, and allow that to be the starting point from which you determine what insurance you need to carry.
As a landlord, you have certain responsibilities and obligations to the government, your business, and your tenants. There are taxes and legal issues you need to become familiar with. You have an obligation to maintain the property. It’s also important to maintain adequate insurance coverage. Familiarize yourself with these and other responsibilities to ensure that you meet your obligations.
For more great tips, join us for one of our monthly luncheons!
See you at a meeting soon!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
Click here for membership information
Get our meeting notices and market data emailed to you.