Terrible Tenants: Is Renting Worth It? Part 1
Whether you are a seasoned pro or new landlord, renting out your home requires some thoughtful considerations. Once you’ve received the signed lease agreement and handed over the keys to your home, you are somewhat at the mercy of your new tenant(s). You’re fortunate if you end up with good tenants. Some people, on the other hand, aren’t so lucky. Read this section and part two to figure out if renting your home is really worth it.
Finding Good Tenants is Essential
It’s not always easy to find good tenants. This is why I buy houses in Raleigh, NC from homeowners every day. Here are some tips to get you started:
- Understand the laws that govern North Carolina
- Conduct a background check
- Know where and how to advertise your property
- Clean your home and make necessary repairs
- Use a rental application, lease agreement, and rental policy
- Require the tenant to get renters insurance
The pros and cons of renting out a home vary. However, if you are renting because you couldn’t sell your home, renting can give you access to extra cash and help you build more equity. The disadvantages of renting the home include the need for ongoing upkeep and maintenance, the extra cost of property management, and the risk of tenants trashing your home. If your new tenant damages your home or fails to pay rent, your experience can easily go from a manageable endeavor to a nightmare.
Avoiding Bad Tenants
You won’t truly know what type of tenant you’re dealing with until after they move into your home, which is why it’s important to have a strategy for avoiding bad tenants.
- Screen Everyone: Do your research to ask the right questions, and conduct a background check on prospective tenants to weed out the bad ones.
- Set Expectations: Discuss with prospective tenants your expectations as well as respective responsibilities. Also clearly state consequences for breaking rules as outlined in the lease agreement.
There may come a point in time where the friction between you and a tenant becomes unbearable and you may feel led to evict that tenant if they have violated the lease. You can evict a tenant on certain grounds which may include their failure to pay rent, engaging in criminal activity, or breaching the terms of the agreement in any other way. In North Carolina, landlords and tenants must abide by Chapter 42 of the North Carolina General Statutes for the requirements for legally removing a tenant.
If you find that you would like to sell your home and need more information about people who buy house homes in Raleigh, NC, you’re in the right place.
Disclaimer: This website is not a substitute for legal advice. If you have a serious legal, tax, or other issue requiring professional advice, please consult with an attorney or CPA.
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