The “Tiny Home” movement has gained traction in recent years and is very popular with retirees and millennials. They are great for singles, couples, and small families who want to own their own home with affordable mortgage loan payments.Read more Is a Tiny Home Right for You and Your Family?
Owning rental properties you purchased with different types of home loans can be a great investment strategy. However, where many people go wrong is not taking the time to consider exactly what is needed to be a great landlord to keep tenants renewing their leases year after year.
- Maintain the properties in decent condition. Treat the rental home like your own and make sure the yard gets mowed, siding gets power washed, and other maintenance gets done on a regular basis.
- Communicate with your tenants. Let your tenants know when you or a contractor needs access to the inside of the home for maintenance, like to change furnace filters. Even though you own the property, you cannot just let yourself in whenever you want.
- Screen new tenants and do reference checks. Anytime you are looking for a new tenant, it is acceptable to check their credit, ask for rental references, and even run a background check.
- Put everything down in writing, even for friends and family. Oral agreements are never a good idea and could create more headaches for you should something go wrong. It is better to have written lease agreements to protect both you and your tenants.
- Brush up on lease/rental laws in your state. You should have a general understanding of the laws in your area, as they describe rights that cover both you and your tenants.
If you are considering refinancing rental properties or are looking to purchase more, remember to call Elite Financial at (800) 908-LEND or (805) 494-9930 today for assistance in finding the best mortgage programs!
For some people, investing in properties they rent out can be a good way to supplement their primary incomes, and can be an excellent way to work towards retirement security through building equity and retirement income. Most of these people still maintain a regular full-time job to ensure they have money to cover their home loans on their rental properties since the rental real estate market can fluctuate and change.
It is not uncommon for a landlord to have a rental home sit vacant for a month or two in between tenants, during which time mortgage payments still need to be made on time. The key thing to remember, if you are considering buying a home and renting it out, it is a long-term investment strategy.
Most people start off by talking to a mortgage broker or other people they know that own rental homes, and doing some research and reading up on real estate topics. This helps them get a better understanding of how the real estate markets work, how financing multiple homes can be done, and what types of down payments are needed.
If you decide you want to try investing in rental homes, it is recommended to start with a single investment property to make sure being a landlord is for you. TIP: Avoid buying homes that need major repairs before being rental properties, as you may never earn that money back.
It is better to buy homes in good shape that only require minor repairs or maintenance. To learn more about loan programs for buying rental properties, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!
- Time of Year – From late spring to early fall, the housing market is busy and rather competitive. The “off season” is the winter months because most people do not want to move. Yet, for those who are house shopping, there can be some great deals to be found because the market is less competitive. Plus, mortgage companies can be slower, so processing time on your mortgage loan is often faster.
- Month of Year – Anywhere from late October to late March or early April is a great time to shop for and move into a new home. Most moving companies are also not busy, and this is their “off season,” too, so you can take advantage of lower moving costs.
- Day and Time of the Week – Try to move during the week when everyone else is at work and avoid weekends. Ideally, your movers should arrive before the morning rush hour, get the truck loaded, and be on the road and to your new home before the evening rush hour.