Originally Posted by Odomize
or ever been one? I might become one soon. I got a two-stories office that I am turning into rental property soon. It will have 5-6 rooms so I'm expecting maybe 6-8 tenants to move in.
Got any advice? It's my first time being a landlord.
I don't know if its a state program or a federal program but around here, people who can't afford housing (according to government) can qualify for "Section 8" housing, which means the government basically pays their rent.
Why this effects you as a landlord? Any damages by said tenants are also paid for by the government after the tenants have left.
We haven't had any section 8 renters, so I don't know how that applies to maintenance repairs, like if a hot water heater stops working or the garage door breaks, but the above stuff that I've written is definitely a reason to be interested in going that route. I believe your home has to be preapproved and inspected to rent to section 8.
There are a lot of different things you can specify in the rental agreement. Much of what goes on depends on the tenants and the landlord. For example if they want to rip up the carpet and lay down tile at their expense you can choose to approve it or not. You can stipulate whether the locks should be changed or not.
There is usually a generic contract written up that you should look into.
At the end of the year you will have to claim the rent as income on your taxes.
You want to charge fair market value for rent so that you can GET a tenant, but if you can do that and charge a little bit above, you can pay the house off quicker (and your house) and eventually once the houses are paid off, you're making nothing but profit. Soon you can buy another house and start the whole thing over again.
A lot of people have done this and retired early just by living off of the rent from their tentants. At first, if you're doing your own maintenance, it can possibly become an almost full time job maintaining your properties, but once you start making enough money to just pay someone to fix them when something breaks.
You need to figure maintenance into the equation as well. Can you provide upkeep on the house if something goes wrong? If not, can you afford to pay someone? That might be another reason to charge a little more for rent than what the actual house payment is.
If you've ever rented an apartment or house, think of all the things you weren't responsible for upkeep.... water heater working.. electricity working... outlets going bad.. heat and air working..
Those are all things that will now be YOUR responsibility as a landlord unless you reach some kind of special agreement with the tenants. An agreement as such is not likely, nor recommended. These are still YOUR properties, do you want a tenant making a decision as to how to fix a faulty electrical socket, or a broken water heater?