If you have a duplex that is lying vacant, consider renting it out rather than selling, as there are a number of benefits of renting a property such as a duplex, which is quite in demand.
The biggest benefit of renting your duplex is that it generates extra income. You can pay your mortgage out of this income and even take out some money for duplex maintenance as well as vacancy costs, still leaving some money in your pocket. For generating steady income, you need to find out what the rental price of the similar duplex is and what other landlords are charging. If your duplex is in an area, where the demand of rental properties is high, then you can expect high vacancy. For maintaining proper income flow, you need to make sure that your duplex is rented out to tenants who pay their rent on time and are responsible.
Another reason of renting out your duplex is the tax benefits. As a landlord, you can claim many deductions. Interest is the largest deduction; this includes interest on mortgage and credit cards that are used in the rental business. You can get any repairs such as plumbing, repainting, or repair of rental property deducted from the taxes. You can also deduct any travel expenses, if the travel is related to their landlord responsibilities; however, you need to keep appropriate records to claim the deductions.
Be Your Own Boss
The reason why you should rent out your duplex is that it offers you a great opportunity to be a boss. Often people who have a property that they use as an income source tend to buy more properties and thus becoming full time real estate investors. You can be your own boss and set your goals to draw many benefits.
Being a little considerate can help you reap maximum benefits from your rental duplex. It is crucial that you keep your expectations reasonable. You can get the help of a property management for that can help you deal with the tenants, find the best tenants, and manage the property. The professionals help you with lease agreements, negotiations, inspections, repairs, and even deal with evictions. It is good to know about the federal and state laws that outline your liabilities and responsibilities.
A property manager can provide you thorugh guidance in the home renting process. He will inspect your property on time to avoid unexpected expenses. He will also call the references and run credit checks to ensure that you get reliable tenants.
In order to run your rental property business successfully and maintain a regular cash flow, you need to ensure that your tenants pay the rent on time. Sometimes certain tenants either delay the rent or refuse to pay it all together.
Here are some effective tips that can help you collect regular and timely rent from your tenants.
Select Your Tenants Carefully
- To ensure that your tenant pays the rent on time, you must ensure that you screen the background of the potential tenants and check their credit ratings properly.
- Follow strict criteria while choosing the tenants and make sure you hold the same criteria for all tenants.
- Besides having a good history of paying rent on time, the tenant that you select must have a regular income, which is at least three times the rent amount or more.
- Get detailed, recent consumer credit report, which has details of past debts and eviction judgments.
- Check references and call the previous landlords to ask about their experiences with the tenant.
To ensure that you get the payment on a fixed date, ask your tenant to set up the payment as a recurring bill with their bank. The bank will automatically transfer the funds from their account to your account on the stipulated date.
Get Post-dated checks
One of the best ways to ensure that you get the rent on time is to collect post-dated checks for twelve months in advance. This way, you can simply deposit the check every month and get your rent payment on time.
Implement A No Cash Policy
Avoid taking rent in the form of cash and get it deposited in your bank account. Bank transaction is a secure way and leaves a trail about the payments. You can easily avoid any conflicts regarding rent payment by taking a check or bank deposit. You can also add a clause about no cash payment in your agreement or furnish a notice clearly stating that you do not receive cash for rental of your property.
Strictly Enforce Your Rent Collection Policy
For ensuring regular and timely payment, keep your rent collection policies consistent and firm. Clearly intimate the policies to the tenants and address all the payment issues such as acceptable payment modes, date when the rent is due, grace periods, exact amount to be paid every month, where to make payments, and the consequences of defaults and bounced checks.
Do not allow the tenants to take advantage of your generosity and impose a reasonable fine for late payments. Being professional is the key to collecting your rent on time.
For more tips, contact us at Lone Star Realty & Property Managment, Inc. We are located at 1020 W Jasper Dr, Killeen, TX 76542. you can also call us at (254) 699-7003.
Finding a rental home is a good option when on a trip or family vacation. However with the number of properties listed online, people often find it a challenging task to find a suitable rental home.
Here are some tips that will make it easy for you to search for rental homes.
- Start Searching Online: In order to find the best rental home you should use the Internet and access websites that list rental properties. These lists are well organized and help you search for a property in a specific area that appeals you. These websites use filters to narrow down your search and help you locate the property that suits your requirements. You can even communicate with the owners to discuss your requirements and get an appointment. Make sure you choose websites that serve as rental agents and help you compare rates, views, amenities and conditions so that you are confident about the rental home before you sign in the agreement.
- Assess Your Needs: Before you start hunting for a rental home, ensure that you have a clear perception of what you want. You must assess your needs and know what facilities are a must for you and what you can compromise on. Decide whether you need a two or three bedroom home, and which appliances and equipment you require in your kitchen. This will help you short-list the homes that meet the criteria and also help you explain your needs to a rental agent.
- Check Terms & Conditions: Before signing the lease agreement you should checkout the terms in the lease agreement and make sure that you agree to all of them. You must make sure that you get all the support from the property owner. You must also clarify who would be responsible for the repair and maintenance of the home and confirm the amount of deposit that you need to pay.
- Inspect The Property: Make sure you inspect the property before signing the agreement. You must check all the plumbing, electrical fittings and other equipment to ensure that everything is working fine. In case the rental home needs some repair or maintenance, then immediately bring that to the notice of the owner or the property manager.
We, at Lone Star Realty & Property Management, Inc. have a vast experience in the field and can help you find a rental home that suits your expectations. You can visit us at 1020 W Jasper Dr, Killeen, TX 76542 or call at (254) 699-7003.