Use this thread to discuss the entry New article on how to be a successful landlord at the InterNACHI Blog
You left out a critical point.
High energy bills in rental units cause landlords more headaches than almost everything else. Why?
A tenant who has to choose between his rent or his electric bill…then gets his utilities cut off … is now living in deteriorating property. The HVAC is no longer removing the moisture, etc…
When the tenant ultimately leaves…the unpaid utilities, in many areas, remain with the house.
Smart landlords will have an energy auditor show them how to reduce the utility bill to its minimum and pay for it themselves by calculating it (plus 10% or so) with the rent.
While charging more than market value will increase your initial return on investment, you might wind up with someone who’s irresponsible with money.
HUH?
Actual fact in point is 5% vacancy rate is the goal.
If someone is willing to pay you more than market value, they might be irresponsible with money. As a landlord, you want people who are responsible with money.
That’s smart. So the tenant will be evicted before the property begins to deteriorate, let me think about that and maybe I’ll throw it in.
That’s what credit checks are for.
I was very successful at getting above market rates as a building manager and I strive to do the same in any business.