The American dream of owning a home is a long-held ideal. But that could be changing. Many would-be homeowners believe renting is better than buying a home due to uncertainty in the housing market.
According to the National Apartment Association’s May 2010 survey, 76% of consumers believe renting is better than buying a home.
Many homeowners also believe that renting out their home is more beneficial than selling it. People who are considering renting their property should not rush to make a decision. First-time landlords could be in trouble if they don’t weigh the risks and costs. Moco, Inc., an American company that offers screening services to property managers, owners, and employers in the United States, provides the following tips.
* Look at the numbers. Renting is not the best option. It might be more sensible to sell if you lose money every month. You should consider all costs such as property taxes, income taxes on tenants’ rents, maintenance, and the general wear and tear of your property. You won’t be allowed to keep all the rent money. Instead, you will need to return some of it to the property.
* Find quality tenants. Even nightmare tenants can make your life difficult. Be prepared for a thorough screening process. Private landlords are often unable to access the same quality screening products as larger businesses. This is because they must go through a long certification process. However, you can avoid time and expense by asking your applicants to visit MyScreeningReport.com. This report contains a comprehensive criminal search, SSN verification and a comprehensive consumer credit report. It also includes an OFAC (federal terrorist database) search.
* Use an all-encompassing lease. No matter if you use a template, or hire an attorney to draft your lease. The lease should clearly state your expectations. The lease should outline who is responsible for what, how much rent you expect to pay and the penalties that you will impose if it’s late.
Visit this site for more information www.MyScreeningReport.com.