Are you mulling over the idea of renting out your Jacksonville rental property? If you are, then there are a couple of vital things you must first understand.
Owning a rental property can be lucrative. You may be able to earn extra income, diversify your investment portfolio, and build wealth through increased property value. That being said, working as a landlord isn’t easy. You have to put in a lot of time and energy to ensure that your investment succeeds.
Below, we’ll share with you everything you need to know about renting out your house in Jacksonville, North Carolina.
Understand Your Obligations as a Landlord
Being a landlord comes with a ton of responsibilities, from maintaining a habitable unit to managing tenant requests and everything in between. If you have no prior experience being a landlord, these responsibilities can prove daunting.
So, before diving in, ask yourself the following questions:
- Will I have sufficient time to tend to my tenants’ needs?
- Who will handle the needed or requested maintenance tasks?
- How much rent will I charge tenants?
- Do I understand the North Carolina rental and landlord-tenant laws?
- Do I know how to market a vacant rental property?
- How will I screen prospective tenants?
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If you can answer most of these questions, then you’re well on your way. But if you can’t, then hiring a professional property manager can be the best option for you.
Draft a Solid Lease Agreement
A solid lease agreement protects you and your Jacksonville investment property, and your tenants.
For starters, a lease is a legally binding document between a landlord and a tenant. It details both party’s rights and responsibilities. What’s more, there can be consequences if one party breaks the agreement before it expires.
When drafting the lease agreement, you should make it as ironclad as possible. You’ll want to include all the nitty-gritty details to avoid any confusion or disagreements later on.
A good lease agreement includes details such as:
- The amount of rent that is due each month. You’ll also want to include other details such as the grace period and late fees if any.
- The security deposit amount before move in.
- The breakdown of responsibility in regards to utilities.
- Important policies and rules on things like pets, smoking and subleasing.
- The occupancy limits.
Prepare the Home for Renters
When it comes to choosing a home to rent, tenants can be picky. This is especially true in a down market. The increased availability at such a time means that tenants have more options to consider. As such, they will usually have higher expectations.
There are no set standards that dictate if a home is rent-ready or not. Different homes will have different needs. But generally speaking, must ensure the space is clean, habitable and that all appliances are functional.
Understand North Carolina’s Tenancy Laws
Once you make that big leap of being a landlord, there are certain laws that you’ll need to familiarize yourself with. One such law is the Warranty...
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