First, are you familiar with the landlord/tenant laws that specify what you can (and cannot) do within the rental relationship? Next, how about local health codes? How about city or county licensing requirements for rental properties? Are you required to have carbon monoxide detectors, and how many smoke detectors are required in your rental property? When is your tenant’s rent due and what is the legal late fee that you can charge your tenant? Furthermore, what about security deposits – whose money is it and when does it need to be returned?
Obviously, there there is a lot to learn about becoming a Troy landlord, as well as numerous ways to put your investment property (and yourself) at risk by not following the various guidelines, rules, ordinances and laws that pertain to rental properties. With this in mind, before you rent out your home, ensure that you have familiarized yourself with these items. Additionally, speak with your insurance provider – ensure that you have an investment property or landlord policy, and recognize that a homeowner’s policy will not cover loss, damage or injury once you are not the home’s primary resident. You must plan to spend about three to seven hours to become familiar with the various legal and insurance considerations prior to renting out your home.
Your next step is to have a method for your prospective residents to apply to rent your property. Inexpensive leases are available online or at an office supply store for around thirty to forty dollars. Yet, these inexpensive leases are often not compliant with local laws, and thus can expose you as a property owner to undue risk and liability. As such, you must use caution to ensure that you are not inadvertently violating your renter’s rights by asking questions of them that may be unlawful for you as a landlord to ask. Hire legal counsel to ensure that your lease protects your rights, and is also compliant with state laws. You need to plan spending about two to three hours for finding a lease, and spend around one to three hundred dollars to have an attorney to review your lease to ensure that it complies with regulations.
Would you like to know more about renting your Troy, Michigan investment property? Please contact us for more information.