PURCHASING INVESTMENT PROPERTY for RENTAL INCOME

For 16 years, we have been landlords with our investment properties around Lake Norman.

I am not going to lie, homeownership to generate rental income is not all fun & games but rewarding on many levels.

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Below is a list of details when considering investment property:

  1.  Rental Application- Charge a minimal fee for application and background check
  2.  Background Check- There are various companies to assist you.   We used Intelius for  years.  Do not bend on this policy.
  3.  Reference Checks for Personal & Professional- Make sure you call the references.  Sounds obvious but having a quick call with people they know your prospective tenant will give you important historical info.
  4. Rental Contract- Have your attorney draft a contract for your investment property.  Be specific.  Review the detailed contract with prospective tenant.
  5. Pets-  Verify and reverify the pet policy.  If you have a no pet policy, make sure to enforce it.  Note some insurance companies and complexes will not provide insurance on certain types of pets.  Check with your insurance company.
  6. Neighbors-  One of the best things I did is get to know the neighbors.  Make sure they have your contact information.  They are your best set of ears & eyes on your property.
  7. HOA- Reach out to your Home Owners Association.  Give them the required information on the tenant.  Make sure the tenant has the a copy of the bi-laws.  Also, note on the contract If the HOA committee has newsletters and/or email, forward them to the tenant.  Nice way to get the tenant involved in the community
  8. Renters & Homeowners Insurance-  Both are inexpensive policy’s, which protects the tenant and homeowner.  Understand where your liability covers and were the tenant’s liability lies.
  9. Umbrella Policy-  Never say never.  Better to be safe than sorry.  Umbrella Policy’s are relatively inexpensive.
  10. Fair Housing Act– Vetting your future tenant has to be legal.  This is easier than it sounds.  Educate yourself before you make a costly mistake.

Our success rate has been virtually problem-free & occupancy rate of 94.6% since 2001.  Our tenants have been exceptional.  Vetting your prospective tenants is beneficial for both parties.  Throughout the years, I have been asked to speak at HOA on successful rental property criteria.  Also, trust your gut instinct- if something does not feel right, keep researching your tenant.  

Today, a brother (Tanner) and sister(Shanna) are vacating after 3.5 years in Mill Creek Community near Antiquity  in Downtown Cornelius.  They had a safe place and convenient to fun activities in the Lake Norman area.   Tanner & Shanna are moving onto greener pastures.   Congratulations!!!  

Your goal is to generate another income stream, satisfied tenants and investing in your future.   Investment Property & Great Tenants = Rental Income

Search HERE for investment properties. 

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Published by A Home Suite Home, LLC- 7/6/2016