Owning a property and managing tenants is no easy feat. If you are lucky enough to own a great property AND have a wonderful tenant, you may not need to read on.
However, in case you aren’t quite that lucky, or you are in the market for a property and a tenant, here is a list of five things every landlord needs to remember.
1. Know what’s going on locally.
As a real estate investor, you may own or be on the hunt for properties located within a different state. To do this in Las Vegas and be safe, you should have the help of a Las Vegas real estate attorney who can keep you up to date on the ins and outs of working with Las Vegas landlords and tenant laws. This will be beneficial in the event your tenant files a dispute or a regulation should change.
If your property search is limited to areas close to home, it is still wise to have a legal representative in your corner. Don’t fall victim to a technicality buried in legal jargon that you may not fully understand.
2. Know the rules and restrictions affecting property before you buy.
All too often, an investor buys a property with the intent to lease, only to then learn that it can’t be rented to a third-party. To avoid this mistake, ask for a copy of any covenants, conditions and restrictions (“CC&R’s”) that may be available. Then sit down with a real estate lawyer Las Vegas investors trust to help you understand the details.
There may be clauses that require one or more of the units to be occupied by the owner. Make sure the rules in place are ones you can live with while you own the property. It’s better to discover this now rather than after you own the property.
3. Factor in all costs.
There are typically more costs involved with managing a property than many people realize. There are, of course, the physical repairs that must be done to maintain the property. These may include leaky pipes, replacing windows, updating light fixtures and upgrading counter tops.
In addition to these, remember to factor in costs that are generally incurred behind the scenes. It is recommended that you purchase not only liability insurance for the property, but that you also require the tenant to keep a renter’s insurance policy in place for the duration of their lease.
4. Check the numbers.
For an even more accurate look into how much you can expect to spend on rental property maintenance, take a look at sites like Trulia and Zillow. These sites offer resources that allow landlords to see the average income of residents, tax rates and the average rent paid in an area. You can also ask the reliable real estate lawyer Las Vegas that investors choose first to assist you with the number crunching.
5. Stay consistent.
The worst thing you can do as a landlord is be inconsistent when enforcing the lease agreement. It is there for a reason, so remember to stay pretty close to the line when being flexible with your tenants. If you allow a tenant to regularly do something that is out of compliance with the lease agreement, you may place yourself in a sticky situation should you decide to take the tenant to court down the road. The judge may rule that the lease agreement need not be observed because it hadn’t been properly enforced in the past.
If a tenant needs to pay rent late, you may elect to allow it as long as it does not become a regular occurrence and you feel the reason provided is justifiable. Put your foot down if it seems to be happening more often than seems reasonable.
Don’t let the stress that may be involved with managing a property keep you from potential investment success. Schedule a consultation with Marc Simon, an attorney with over 30 years of experience in real estate law, to ensure your interests are protected. For more information about this Las Vegas real estate attorney, contact 702.451.7077 or firstname.lastname@example.org.