|
You will have the base fees of your mortgage fees, but also most people choose to have their property taxes put into their mortgage. No worry about having the money saved up through the year to make those payments, the bank will do that for you instead. Then add in the property insurance, I imagine you would have to let your insurance company know that you are also renting the building out. I imagine there is more insurance in that case. Another consideration is the housing code. Each municipality has various rules that have to be met on what is allowed in rented property. Could be a matter of fire alarms, how certain appliances are wired or something as big as how many bathrooms should be in a building.
A few tips I have learned over the years. In regards to pets, to allow or not to allow? If you allow pets, particularly dogs you may want to do a pet interview. You don't want someone who has an angry dog biting everyone in the neighborhood. Charge a pet fee per animal and also request that they return to you proof of vaccinations. If they cannot provide this much they are probably a careless pet owner that you don't wish to have in your home. A spraying animal can do a lot of damage, so can a nervous dog locked up in a room. I knew of a friend who had a dog that tore out all of the sheetrock from the mudroom she locked it up in.
Another consideration to keep in mind in maintenance. I have known of property owners who would allow to do some basic maintenance such as changing lightbulbs. What a hassle right? Possibly, but in doing so you are giving yourself a nose in the door to take a peek at how they are keeping your property. Not a bad idea to have an agreement to allow an inspection quarterly or at least twice a year.
In writing your lease contract a consideration to make is to consider offenses which could lead to an eviction. You can definitely put it in place that certain police charges are unacceptable and will lead to an eviction. I know that where I live there is an apartment that has such a policy on drug/alcohol and domestic abuse. I know that many would probably disagree with the drug and alcohol part, but when an aspect of someone's life disrupts another it is unfair. You can also make your own personal decision to let it slide if it occurs, keep in mind that if you find out the renter is trashing your place this could provide another avenue to evict them.
Get to know the nearby neighbors, give them your number and make them comfortable with calling you if they have any complaints about your tenants. You could end up with one of those complainers who never seems satisfied and calls you over every little thing, but it could also be worth it to you and your investment if something shady were going on.
|