{"id":369237,"date":"2016-04-04T10:47:19","date_gmt":"2016-04-04T15:47:19","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/landlord-tenant-law\/perks-of-being-a-landlord.html"},"modified":"2024-06-13T17:55:58","modified_gmt":"2024-06-13T22:55:58","slug":"perks-of-being-a-landlord","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/landlord-tenant-law\/perks-of-being-a-landlord.html","title":{"rendered":"Advantages of Being a Landlord"},"content":{"rendered":"\n
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Advantages of Being a Landlord<\/h1>\n
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\n By Melissa McCall, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

Many real estate investors understand the value of an investment property. But if you have a residential property you are not using, you can turn it into an investment property. Real estate investments can help you increase your net worth if appropriately managed. The advantages of being a landlord can help your financial position in many ways.<\/p>\r\n

This Findlaw article examines the advantages of being a landlord<\/a>.<\/p>\r\n

Renting Out Your Property<\/h2>\r\n

Before you take any steps to rent out your property, you should check with your mortgage lender. Renting out your property without approval may breach your mortgage contract. Most mortgages require a 1-4 family rider. You must also check the property’s local land use and zoning<\/a> to see if it allows rentals.<\/p>\r\n

Preparing Your Rental Property<\/h3>\r\n

Once you clear those hurdles, the next step is getting your rental property ready for tenants. The responsibility for upkeep and maintenance costs<\/a> falls squarely on the landlord or property owner. As a rental property owner, you must maintain a habitable rental property throughout a tenancy. Depending on how many rental units you have available to rent, you should consider contracting with a property management company. Property managers can help with different aspects of the rental process.<\/p>\r\n

They can conduct tenant screening to screen potential tenants and help you avoid a bad tenant; they can help with maintenance requests from renters; and they can advise you on necessary upgrades to ensure your property meets local housing code standards. They can also take care of any necessary evictions.<\/p>\r\n

Rental Income<\/h2>\r\n

You need to calculate how much you can charge for rent at your property. In most situations, you need to figure out what amount of rent you need to break even and produce some income. At the same time, you should also know the local housing market conditions. You can check local real estate websites or contact agents for more information.<\/p>\r\n

You can’t count on having a stable income from your rental property for all 12 months of the year. Residential lease agreements<\/a> typically last a year, and even if your house or apartment is in a high-demand area, you must account for transition time between tenants. This transition time could be one to two months, depending on the apartment’s condition, when the previous tenant moves out, and how quickly you can find a new tenant.<\/p>\r\n

Calculating Rent Charges<\/h2>\r\n

As you consider how much to ask for rent, be sure to calculate factors such as the following:<\/p>\r\n