If you are considering venturing into this business, the first step is to look for a Real Estate agent that will help you to get the investment property that has the correct attributes.
Then you should contact a lawyer specializing in Real Estate to advise or recommend you what type of company you should choose to form for purposes of titling, taxes, succession and others.
It is very important to know and understand the Anti-Discrimination Law.
It is very important to know and understand also the Law of Eviction.
All residential rental contracts must have a term of 365 calendar days. It must not exceed that limit, for legal and practical purposes.
After the contract reaches its term it can be renewed maximum for another 365 days. In the contract you can indicate the increase of money for the contract renewal. Any contract that exceeds 365 calendar days, must be drafted by a lawyer specializing in Real Estate.
In the contract you can add a clause that determines what type of minor repairs and for what amount will be the responsibility of the tenant for the duration of the contract.
The contract must specify the number of people who will occupy the property, their identities and ages.
In case of having more than one unit it is recommended that the tenant read, sign and have a copy of the rules of coexistence with the other neighbors to avoid possible disagreements.
This regulation is drafted by the owner. It is recommended to consult with a specialized lawyer.
If the property or properties in question were built before 1978, the potential tenant should receive information about of Lead Disclosure.
You must open an Escrow Account to deposit and keep the amount of security. The tenant must have knowledge of where that money is kept and whether or not it earns interest.
It is recommended to consult with an insurance agent . He or she will explain you the different types of insurance and help you choose the most convenient coverages.
The contract must indicate that you as owner can enter to the property, prior notice to the tenant, for maintenance purposes such as change of air conditioning filter, check any leak and/or proper operation of the equipment.
Every technician or professional who does any maintenance or repair work must have a liability insurance that covers it and must be endorsed in the name of the owner and the address where the work is being done.
You have to check the credit, labor and police records of any potential tenant to choose the best one.
Always maintain the courtesy and good relations with your tenants.
You must need to have a set of property keys or master key.
Maintain a detailed history of each property.
Have a record and meet licensed technicians in the area, from which you may need their services, basically, plumber, air conditioning technician, electrician to name the most important.
One month before you are planning to put the property for rent or it will be available again, you should put a signboard of “For Rent” to promote the property and start interviewing potential tenants, so you are saving time and keeping the property occupied all time.
You must save the codes of the colors of painting and keep the identification codes of everything that can be replaced.
It would be recommended to have some skills to maintain your properties. There are free classes in some stores and tutorials on the internet that are very helpful.
It is important to keep controlled any type of pests, such as ants, cockroaches, rodents, termites etc.
It is also recommended that your air conditioning technician install a surge protector to safeguard the equipment and avoid unnecessary expenses.
Contrary to what most owners think, we recommend that kitchen equipment and counters needs to be good quality and have extended warranties. You do not want to waste time, nor money to replace them.
You can hire the services of a handyman as long as the repair or replacement does not require a specialized technician or a professional.
To determine the correct rental price you can search for references and comparables online such as Zillow, Trulia etc or hire the services of a Real Estate Agent to help you,
If the property is part of a Condominium or Association, the application usually have a cost and the administration will accept or reject the potential tenant. If accepted, you as the owner must inform the tenant of the Association’s Regulations.
To every rental contract, you can add clauses of restrictions and these must be known to the tenant, for example, if it is allowed to park boats, trucks or mobile homes on the property, whether or not you can do mechanical work. Size, weight and number of pets. Whether or not your tenant can make any change of exterior/interior or the color of the paint etc.
As in any business, time makes the expert and the Real Estate business is not the exception. We recommend you to follow the advices of those who already have knowledge in this business so you’ll have assured success.