With the kids gone it’s time to downsize. But the best option may be to keep the house and rent it out. Or perhaps there is a nest egg to buy a small rental property, an investment to create additional income. Or, maybe, the apartment over the garage is finally cleaned out and ready for a renter.
So you want to be a landlord?
There are a number of things to take into consideration before becoming a landlord. There’s the expense in the original investment, maintenance of the property, and finding a renter.
And conducting a tenant background check.
Adam Almeida, President and CEO of TenantScreeningUSA.com, states: “Being a landlord is no simple task, one that requires patience and persistence. And an important part of being a landlord is fully vetting all tenants. A best practice for tenant screening is to work with a well-qualified third-party tenant screening agency to remain compliant with all law. And, keep in mind, laws can change frequently.”
Additionally, screening a tenant helps protect property and the investment. Investing in a rental property is a big financial commitment and one does not want to threaten financial standing through a bad tenant.
From Bizrate.com (Oct 4, 19):
Being stuck with a bad tenant can not only disrupt your cash flow, but it’s also one of the reasons landlords fail.
“People don’t screen their tenants adequately. One bad renter can ruin you,” … This can be especially true depending on your state’s landlord-tenant laws. (1)
Laws that govern tenant screening and reports utilized therein are often complicated and can change frequently. For a new landlord it can be overwhelming.
From Bizrate.com (Oct 4, 19):
It is important to “always know and understand your federal, state and local rental laws,” … “Many landlords learn the hard way that not being knowledgeable about the laws can end in costly lawsuits or lost rental income.”
The U.S Department of Housing and Urban Development (HUD) Fair Housing Act prohibits housing discrimination based on race, color, national origin, religion, sex, disability and familial status. In addition to federal discrimination laws, each state and city will have specific landlord-tenant laws and regulations.
“Knowing the law will help you stay in complete compliance with regard to safety issues,” … “Not knowing will not protect you from legal action.” (2)
Being a landlord can be very rewarding, as long as you have the tools to do it. Adding a tenant screening agency to your tool box is a best practice.
Almeida concludes: “Working with a tenant screening agency is critical and well worth it. The cost of not being in compliance is far higher than a simple tenant check. Additionally the cost to perform a thorough tenant check is negligible compared to the monthly rental income.”
TenantScreeningUSA.com provides full service tenant screening for landlords and property managers of any size and can greatly assist in remaining fully compliant with all existing law governing tenant screening practices. With a highly trained and experienced staff, TenantScreeningUSA.com can provide help to landlords and property managers with all their tenant screening needs.
Note:
(1) bankrate.com/real-estate/becoming-a-landlord-do-you-have-what-it-takes-to-manage-property-and-people/
(2) ibid.
