If you’re a real estate investor who wants to save money by managing your own Michigan rental properties, that is an achievable goal. However, there are some downsides to being a landlord that you should consider before you start assuming that responsibility. Here are a few suggestions to help you avoid some common pitfalls.
Know your rights
The first thing that you need to do is to familiarize yourself with Michigan’s Landlord and Tenants Relationship Act. Take the time to understand how to manage security deposits, initiate an eviction process and the tenant’s right to expect reasonable privacy.
Find a handyman
One of the most frustrating things about being a landlord is how difficult it can be to find a dependable handyman. You’ll want someone who can handle light plumbing, electrical and structural repairs. If they also have experience installing flooring and painting interior walls, that’s a significant bonus.
Make life a little easier for yourself by finding quality tenants with the proven capacity to pay the rent on time. Your real estate agent may have access to tenant-screening software that provides for credit and background checks, which the prospective tenant pays for online.
Customize your lease
You might use a realtor’s standard lease when you first start. However, once you gain experience, you’ll know the issues that arise that templated leases don’t cover. Do not write this lease yourself because your version may not withstand legal challenges.
Consider purchasing a home warranty
If you don’t want to receive repair requests from your tenants, sign a contract with a home warranty company. They are reasonably priced, and the tenant can call them directly if there are appliance, plumbing or electrical problems.
Managing a rental property is challenging, but it can save you money. It’s up to you to decide if you have the temperament and resources to handle the job.