I would suggest that landlords need Landlord LIABILITY insurance coverage since homeowner coverage is different for an owner-occupant property. Having good liability insurance coverage is very IMPORTANT!
Michigan land lords are sitting in the drivers seat since the Michigan Foreclosure Boom is over and values are coming back. Not only were they able to buy great rental properties over the last 5 years but even right now there are thousands of houses in strong rental neighborhoods that are still available to cash buyers. Most times if a property is appraised for less than $50,000 it becomes difficult for buyers to get purchase financing. This is where cash buyers come in to sweep up cash flowing rental properties. Remember one thing in business…Cash is KING.
Here’s 7 quick tips to help you be a more profitable land lord;
Make sure you have a strong, legal lease that a competent attorney has gone through
Know the local laws
Take the time to call references and run credit checks
Set up an escrow account for security deposits
Attain proper homeowners insurance
Decide who’s managing
Treat it as a business not a hobby
BONUS: The one piece of advice I give anyone who’s decided to become a land lord is this…make sure you set the parameters with your tenants long before you sign any paperwork from them. Assuming you haven’t overpaid for the rental house, and you have most of the items above checked off of your list, being a wimpy landlord is your last roadblock to success.
Don’t be a wimp!
See you at a REIA event soon,
Dylan Tanaka - Founder
Wallace S. Gibson, CPM * GIBSON MANAGEMENT GROUP, Ltd.
"...to be a Virginian, either by Birth, Marriage, Adoption, or even on one's Mother's side, is an Introduction to any State in the Union, a Passport to any Foreign Country, and a Benediction from the Almighty God...." Anonymous