Acquiring & Managing Rental Properties

Do your research before buying. Consider market conditions, the local unemployment rate, the proximity to schools, transportation options and whether the neighborhood is considered desirable. Consider hiring a management company. These firms screen potential tenants and arrange for routine maintenance on the property. It's a good way to protect yourself from unforeseen problems. Fee: 10% to 15% of the gross rental income. Be very picky about tenants. Bad tenants pay late or not at all, and may damage the premises. It can take six months or more to evict a tenant. Make sure to check credit and business references. Don't expand too quickly. Unexpected vacancies can make it very difficult to meet carrying costs. Update your rental application to reduce legal and other problems.