The consideration of investment in real estate and becoming a landlord comes with many benefits as well as landlord responsibilities. Becoming a Landlord can be lucrative and is a good way to crate a passive income stream.
However, you should examine the responsibilities of a Landlord and consider several details before making the investment.
Some of the resposibilities of a Landlord are:
- Complying with Fair Housing Law
- Follow New York State Rent Rules
- Provide Habitable Housing Accommodation
- Preparing a Legal Written Lease or Rental Agreement
- Make Legally Required Disclosures
- Maintain Fairness With Tenants Who Exercises a Legal Right
- Apply the Correct Procedures for Terminating a Tenancy or Evicting a Tenant
Before you start the process of becoming a landlord, you will want to make sure that your investment will yield a profit.
This means finding the right location, finding good responsible tenants and having the ability to market your property. Having the ability to reach out to the right people can help to reduce loss of income from rent and minimize building repairs.
You will want to ask yourself whether you are fit to deal with different personalities from tenants, late payment of rent, tenants breach of their rental contracts and other problems that will often arise.
Depending on the number of rental units you are considering to purchase, you could also consider the option of hiring a Property Manager or a Building Superintendent.
In other instances, you can also hire a property management company to oversee the rental process from finding tenants, conducting repair and dealing with court eviction.
On the other hand, becoming a landlord can be beneficial for you if you rent your property to the right tenants. In this case, you might have less problems to deal with and will realize more profit after preparing your profit and loss and cash flow reports.
If you are successful with your business plans of becoming a Landlord, then you will have the ability to take a year long vacation while you collect passive income from your rental property.
Nonetheless, investing in real estate is a great way to create wealth if you understand all the intricacies of the business. A good place to start is by consulting with a real estate attorney and accountant to get more information on the legal, and tax benefits of becoming a landlord.