Landlord Tips

Tips for Dealing with Tenants

There are a lot of perks to being a landlord including monthly rental income, financing a property through tenants and growing your investment portfolio. However, nearly every situation has an equal and opposite and in the case of renting, the obstacles can seem rather overwhelming if you’re not prepared for them.

Know Your Rights

Landlord rights differ across states, but it's important to get well acquainted with your rights and responsibilities before renting a property. You can visit your state government website to learn more about specific laws regarding landlord laws in your area.

Basic Responsibilities

• Ensure the property is habitable before tenants move in
• Pay for all repairs due to basic wear and tear
• Do not unlawfully discriminate based on race, religion or sex
• Do not turn off tenant's water, electricity or gas

Leases

As a landlord, the lease is your best friend. It's unfortunate, but most landlords will deal with unruly tenants at some point, which is why a specific, detailed lease is imperative. Getting lease terms in writing helps protect you and your property in the future. Include all of your expectations in your lease from the the time frame that the tenant will rent to whether or not they are expected to mow the lawn.

Items to Cover in the Lease

• How much is the rent and when is it due?
• How long is the lease for? Month to month - a year?
• What is the total deposit and what does it cover?
• Pets - are they allowed? Is there a pet cleaning fee?
• How many tenants are included in the lease? Can more people move in?
• Who pays for what repairs?
• Who takes care of lawn and snow service?
• Is the tenant responsible for their own utilities?
• Is there a fee for late rent?

Issues Getting a Tenant to Vacate:

Tenants have a lot of rights when it comes to the home that they have been occupying, which is why many landlords complain incessantly about the process of evicting tenants. Your first step is to treat your tenants with kindness and respect, preferably from the first day that they move in. If you maintain a positive relationship, they are less likely to create conflict if an eviction occurs at some point. If for some reason, you need to ask them to leave, start with a conversation. Explain your reason for asking them to vacate, offer them a positive reference (if you’re willing) and inform them that a written notice will follow the verbal one. Give written notice to them directly to ensure that they receive it and make sure that you adhere to any local tenant notice laws in terms of what the notice should say and how soon they must receive it. If your tenant refuses to leave, you may have to file an Unlawful Detainer Suit and begin court proceedings to have them legally removed from the premises. This generally includes filing a complaint or petition with your local court and a future court date will be set. In many cases, the tenant will be required to respond to legal documents and appear in court.

As an East Lansing realtor that specializes in licensed rental properties, I can assist you if have questions about your rights and responsibilities as a landlord. If you;re thinking about expanding your portfolio to include rental properties, including East Lansing rental housing, get in contact with me at MyRealtorRob.

Buying a Rental Property

Rental properties are appealing because they offer an investment with a tangible product attached: i.e. a house or building. Unlike stocks, investment properties will not miraculously plummet one morning while you're drinking coffee and watching the Nasdaq. However, owning rental property is not for everyone. It may seem like a solid move picking up the duplex down the street, but when your new renter is knocking on your day at 3 am because their basement is flooded, you may second guess your original enthusiasm over a new rental property. Not to deter you from buying rental property because this article is actually in support of putting your money behind real estate, in part because investment properties can be had for a fraction of their costs from just a couple of years ago and the market is currently flooded with people looking to rent.

So how do you prepare yourself for life as a landlord?

First figure out what your expectations are and then forget them. Rental property is not all positive cash flow all of the time. Some months you will have to make major or minor repairs and your rental income might go right back into mending a fence or repairing a leaky roof. Regardless, your renters (if you've found a solid deal) should be covering the cost of your mortgage so you're purchasing a piece of property without paying for it and hopefully making some extra money as well.

But I'm getting ahead of myself here. The first thing you need to do is start looking for the deals. Consider more than price here (though that's important too). You need to take into account the location, the nearby amenities, the rental population in the area and the features of the rental. Are you looking at a 4-Unit apartment building with only one parking space in a town where everyone drives? This might not be the best deal. Is the rental home perfect except it's located next to a water treatment plant? The devil is in the details with any real estate investment because you're banking on someone else choosing to live and pay for the apartment or house. If it's not a desirable place to live, the amount of rent that you can charge will probably dive and you may find yourself paying out of pocket to cover your monthly expenses.

You should also consider your capabilities as a handy-man. If you can't fix even basic problems, you may want to consider a property management company that covers repairs, takes care of rental applications and collects a fee for their services. Again this depends on how much rental income you're collecting each month because the point of your purchase is investment, not expense. Management companies also deal with renters, which can save you a lot of time and energy.

Once you start hunting for a great investment, find a good Realtor that specializes in rental properties so that you have access to investment homes and buildings as soon as they hit the market. In real estate, good deals go fast. You should also spend some time figuring out what kind of financing is available or if you have the option of paying cash. Start by pulling your credit report and considering how much you can put up as a down payment.

Rental properties located near Universities and cities are often ideal options because you always have a large pool of potential renters. Avoid rural spaces or properties located far away from major amenities like grocery stores, bus lines and schools.

If you're looking for a rental property in East Lansing or the Greater Lansing areas, please contact me at MyRealtorRob. Investment properties are popular right now; in fact, I just listed four in Mason over the previous week. I also specialize in East Lansing rental properties and I'm more than happy to answer all of your real estate related questions.

5 Reasons To Buy Rental Housing Near a University

It may not be time to go back to school, but that doesn’t mean you shouldn’t be frequenting college campuses. These property gold mines are profitable and sound investments and, depending on your location, can be more than affordable. For instance, I have several East Lansing, Michigan rental houses listed, just blocks away from Michigan State University, that are priced under $200,000 and two that are priced below $150,000. For homes that rent in upwards of $2,000 plus monthly, that can work out to be a very good investment.

According to a recent article by Ann Brenoff published on AOL Real Estate, college housing investments have thrived while most other housing markets have declined.  Brenoff cites increasing college enrollment that is not coupled with growing housing options, thus creating an opportunity for property owners to cover their mortgage and see some positive cash flow.

This isn’t an investment strategy for seasoned veterans only. Many parents of enrolled students and students themselves have begun to purchase property near their universities. For instance, Zac Bissonnette, a 2011 graduate of the University of Massachusetts, bought his first near-campus investment property his freshman year of college and his second year bought another one. He found that he easily covered his condo payments and had additional money to spare.

5 Reasons to Buy Property near a University

• Large population of potential tenants (students) for the foreseeable future.
• Students generally don't pay for their rent; their parents do, which increases the likelihood of timely, consistent payments.
• If your child attends the university, an expensive rental payment is alleviated and you can make money!
• Housing near campuses attract more than students. Think professors and university staff.
• University towns often have a lot of appealing amenities, which helps keep property values stable. For instance, in East Lansing we have an amazing variety of ethnic restaurants, great eclectic shops and a myriad of fun venues to check out.

East Lansing, MI