information about being and becoming a landlord?

Question

how can i become a landlord. is there anything i need to do before renting out private properties? and are there any sites with rules, laws etc?

Answer 1

The laws vary from state to state as to whether you need to register with them. You'll also have to decide whether you want to be eligible to accept welfare/section 8 payments. If you do, then you'll have additional inspections and forms to file with the state. In my state all I need to do is make sure my property is inhabitable (running water, proper heat, etc), then put an ad in the paper. Protect yourself with a lease, a basic version of which can be downloaded from many places, or purchased at Staples.
As far as Federal issues go, once you own rental property, you will file a Schedule E along with your personal income tax return. You do not have to set up a seperate business for your rentals or file a seperate return. The income is included with the rest of your income for tax purposes. This form allows you to compute your actual income from the property. But be aware, there are many things you can deduct on a rental property that you cannot deduct on your own residence. You'll depreciate the value of the abode, and can deduct legal fees, maintenance, home improvements, paint, travel expenses, and all sorts of fun stuff.
Go for it! Some people find this to be a great source of income (obviously). I would suggest that you call your local Health and human Services department to get you started if you want to rent to low-income renters. They'll point you in the right direction to find out how to do that. I have attached information from the IRS on the tax side, and some landlord's tools from another site I found helpful.

Answer 2

Think twice, Bud. And check the laws in your state and/or city, to determe what protections the tenant has, from YOU.

In some places, you have to wait three months or more, after a tenant stops paying rent, before you can evict him or her. If the tenant trashes your place, the security deposit s/he gave you may not cover the costs of repair and/or clean-up.

Remember, when a tenant's guest shoves a tampon down the toilet and it backs up, flooding your property, it will be YOU who has to pay the plumber and the clean-up crew. Or you'll be doing the repair of the toilet and any damaged floors or walls, and the clean-up, yourself. Usually, these emergencies happen at exactly the worst time for YOU.

Lots of people think, "Oh yeah, I can rent this place out and get enough income to cover the mortgage, so I can buy somewhere else, where I can live." But renting out your property is a risky business, and the prices that you're able to charge for rent may not adequately compensate you for that risk.

Remember, renting out your property is a business. Before you enter into that business, an analysis to see how profitable your venture is likely to be. Look at the laws, and imagine how they would be enforced, if you had the world's worst, most-conniving, most-unscrupulous tenant. Then, look at the rents that you will be able to charge, for your property. You can contact a real estate agent about this, as many realtors handle rentals as well as sales. Then, determine for yourself whether the money you will be making will compensate you for the risks you will be running.

Good luck.

Answer 3

Check with your State's Landlord/Tenant Laws. Listed under your State Offices. Get a copy. Laws are set up now in favor of Tenants, and believe me, they are aware of them. Lawsuits are rampant in the courts now against landlords. Do it right and you will have no problems. I've been a landlord for many years, love it. Good Luck!

Answer 4

best advise....DON'T.... it is nothing but a headache.