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.
Below is a list of details when considering investment property:
- Rental Application- Charge a minimal fee for application and background check
- Background Check- There are various companies to assist you. We used Intelius for years. Do not bend on this policy.
- 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.
- Rental Contract- Have your attorney draft a contract for your investment property. Be specific. Review the detailed contract with prospective tenant.
- 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.
- 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.
- 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
- 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.
- Umbrella Policy- Never say never. Better to be safe than sorry. Umbrella Policy’s are relatively inexpensive.
- 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.
Published by A Home Suite Home, LLC- 7/6/2016