The costs of being a landlord

Force-placed-ins-money-house-article-2If you are in the enviable position of owning a home as an investment property, renting that home to tenants could be a smart financial move for you – as long as you consider all of the costs involved. Here are some of the financial factors you should think about:

Recurring expenses: Unless you own the own home outright, you’ll have a mortgage payment, as well as homeowner’s and landlord insurance and maintenance costs. Depending on the neighborhood, you may also have homeowner’s association dues and assessments.

Tenant screening: To protect your assets, do a background check on any prospective renters, including eviction reports, credit history and a criminal background check. Costs vary. Note: You’ll need to get the prospective renter’s permission to run these reports.

Planning for unplanned maintenance: As your home ages, so will its interior, exterior, systems and appliances. Set aside money to cover repairs or replacement costs – planned and unplanned – and do repairs as soon as possible to prevent problems from getting out of hand and more costly.

Property manager fees: If you don’t have the time or inclination to manage your investment property yourself, a property manager can handle things for you. This is particularly useful if you live far away from the property being rented. Fees vary.

For more ideas and tips on becoming a landlord, check out House Logic or Landlord Solutions.

Source: http://www.houselogic.com/home-advice/home-thoughts/house-rental-finances/

About Marti Reeder

I am a full-time, full-service REALTOR® for John L. Scott, Kent-Covington, Washington. Serving primarily the South Puget Sound, my goal is to provide my clients with first class service and to make the home buying or home selling process as simple as possible.

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