Advice for Landlords

Purchasing a property, fixing it up, and renting it for profit is not only a good way to make money; many people consider it downright fun. It is also a lot of work, however, and can involve a high degree of financial risk. If you are considering renting out a property, here are a few tips to keep in mind.

Be sure to get everything in writing. This is a basic rule of business transactions, but it is often overlooked. You may want to maintain a friendly or informal tone with your tenants, and there is nothing wrong with that. Remember, though, that you are still conducting a business transaction. Write down and have everyone sign each tenant's:

• Rent amount
• Rights and responsibilities
• Condition of the property when he or she moved in
• Services that you will provide
• Anything else that seems relevant

Always request and check references. If someone will be living on land you own, you definitely want to know who this person is. What does the last person who rented to them have to say? Can you get in touch with former neighbors? Be sure to ask about this person's courteousness, noise level, willingness to care for the property, and any other questions you may have.

If possible, run a credit history check on all potential tenants. Landlords are not allowed to do this in certain counties, so you may want to check with an attorney or the local courthouse. If it is permissible, you will definitely want to know the financial history of every tenant.

Contact an Austin Real Estate Agent

If you are looking for an Austin home to buy and rent, the Carvajal group of Austin realtors can help. Call us today at 512-419-7770.