Taking risks and preventing failure.

[badmomma]

Most of us want to buy real estate to resell it later. Alot of us however would like to keep it for rental income.

Being a landlord can either be a good experience or a bad one depending on how you choose your renters.

First come first served doesn't always work well if you know nothing of their previous history.

But before all of that your are going to purchase a building and here are a few things to think about.

A common problem for new landlords is buying a property without checking zoning permits. For example, suppose that you buy a multiunit building only to be notified later by your city that the previous owner had not obtained the necessary permits required to convert it from a single-family dwelling. This can mean paying big fees or even being forced to turn the dwelling back into a single-family home. This is bad news if you were counting on three rents to cover your mortgage payments.

Each state has its own laws regarding landlords and tenants and knowing your states laws will save you time later.

If you treat your tenants well, most will treat your property with respect. Some will not, and if you end up with one of these tenants, you could be in for a long, hard fight. Tenant rights vary by state; in California, for example, a landlord can terminate tenancy with only three days' notice if the tenant has "materially damaged the property," according to California's Department of Consumer Affairs.

However, while most state laws have reasonable provisions that allow landlords to evict bad tenants, balancing tenant and landlord rights is tough. Most states also allow the tenants to fight the eviction notice in court, which can turn into a drawn-out battle as both the tenant and landlord fight to prove who is abusing whom.

Get to know the people you are renting to its important. It is also important for a renter to know something about the landlord. Either way landlord or tenant you want to protect yourself. Do a little research and save yourself some aggrevation later.

[flippinout]

You are so right, being a landlord or landlady can be a harrowing experience. And, for this reason, I think it is best to have a lease drawn up by an attorney. This way all the rules are laid out in black and white and sometimes just having the lease drawn up by an attorney can give the tenants more of a feeling that you are in control.

A problem that does arise a lot is in the security deposit. If the tenants have done damage to the property, this is what the deposit is for, to cover those damages. And in all fairness if you have collected a say $500 deposit and fixing the damage only costs you say $200, I say that in all fairness the difference should be returned to the tenant.

Also a clause in the lease saying exactly what the tenant will be responsible for and for doing will save a lot of problems later on.