Owning rental properties can be a great source of a passive income. All you have to do is buy a home, condo, apartment complex or duplex, and then sit back as tenants send you monthly rent payments. At least, that is the vision many new real estate investors have when they first start building their business.
Then, at 8 p.m. on a Saturday in December, you receive a call that the furnace does not work. Or, a water pipe is leaking while you are on vacation. Worse yet, you receive a call from the neighbors complaining of regular, late night hijinks. In the end, a landlord is a repair person, a negotiator, and a conflict resolver.
Moreover, a landlord must follow national, state, and local laws and regulations. There are health and safety standards, rules for collecting and handling security deposits, and a tenant's right to privacy. Some repair issues must be addressed within 24 hours, while non emergencies may give you more time. And, in the vast majority of cases, a landlord cannot enter a property without notice, even during an eviction.
Here are some of the basic things you need to know about being a landlord.
1. Following Saftey Laws and Codes - As a landlord, you are responsible for knowing and following all landlord/tenant laws, which exist at the national, state, and local level. How many smoke detectors and carbon monoxide detectors do you need and should they be hard-wired? What is the limit on the number of occupants? Will you need to install safety guards on windows?
2. Repairs and Maintainance - initially, a landlord must ensure the rental property is habitable at the time the tenant moves in. Additionally, a landlord has the obligation to perform regular repairs and maintenance to keep the unit in that condition. This means the property is structurally sound, and that the heating, electrical, and plumbing systems are in good working order.
3. Proper Handling of the Security Deposit - You have an obligation to return a security deposit at the end of the tenancy, given that the renter did not damage the property. The security deposit is not for normal wear and tear, and you will need to provide an itemized list of any repairs completed. When it comes to security deposits, courts tend to lean in favor of the tenant. So, it is crucial to have a complete accounting of actual costs.
4. Giving Notice of an Upcoming Entry - There are very few circumstances that a landlord can enter a property without giving proper notice to the tenant. This can be because of an emergency repair or property abandonment. Otherwise, even though you own the property, it is the tenant's home and the law gives them a right to their privacy.
At Housing Helpers we can help you be a great Landlord by handling all of these things and more. As professional property managers it is our job to stay on top of repairs and maintenance, local laws and codes, and handling of security deposits. If you love the idea of owning rental property but don't love the idea of being a Landlord, give us a call to see how our property management and leasing services can help you! 303-545-6000.
Also check out our Landlord FAQ's for more information on how our property management services can benefit you!
Arvada Property Management
Boulder Property Management
Broomfield Property Management
Lafayette Property Management
Louisville Property Management
Longmont Property Management
Superior Property Management
