Tips for homeowners who turn into landlords

WASHINGTON – March 11, 2009 – Homeowners who decide to rent out their properties have to stop thinking of themselves as homeowners and instead consider themselves as running a small business, experts say.

Thinking like a businessperson means focusing on the monthly cost of maintenance, mortgage and taxes, as well as being aware of landlord-tenant regulations and avoiding liabilities.

Here are key issues to consider:

• Set a fair rent. Setting the right price will make it more likely that a landlord will be able to keep the place rented.

• Understand landlord-tenant rules. Running afoul of landlord-tenant regulations and rules regarding security deposits can be costly.

• Screen applicants. Eliminating potential tenants who can’t pay or who won’t take care of the property is very important.

• Lay out the rules in a lease. Widely available sample leases can help. If you have questions, ask an attorney.

• Consider a property manager. Despite the expense, turning the job over to experts can help a landlord come out ahead.

• Talk to the condo association. If the property is a condominium, be prepared to deal with a host of regulations.

Source: The Washington Post, Renae Merle (02/28/2009)

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