One of the best ways to ensure that your unit is always occupied although in a low budget is by having Section 8 Tenants. If your unit has been lying around for a while and has not had a tenant, you may opt to have your apartment or house listed into the Section 8 listing. This gives it more visibility and increases the chances of getting tenants in the future. You can also be sure that you will surely get paid as this is funded by the government.

What is Section 8?

Also called the Housing Voucher Program, Section 8 is an assistance program for certified U.S. citizens or immigrants with very low incomes. This housing project is funded by the U.S. Department of Housing and Urban Development (HUD), with allocations administered by Public Housing Authorities (PHA).

How Does it Affect A Landlord?

Because this program is funded by the government, you can be sure that the payment will be made every month. Although the rental amount for the tenant should not be more than the 50% of their total income, the amount to be paid by the government is limited to ensuring that the leasing rate remains competitive to those within the area and to tenants who are not in the program. There is a security deposit paid by the tenants but it should not be greater than the security deposited by other unassisted tenants.

You may enlist your apartment or home in the Section 8 listing to make it available for viewing. This increases the chances of tenants in the future, as even those who are not in the program may also see a listing of the houses or units for rent.

What are my Restrictions as a Landlord?

Just like any other tenants, those under the program should be treated and provided the same priveleges as non-participants from screening process even up to eviction.  The same laws and regulations should be abided by the landlord and tenant while within the program. You may reject a Section 8 tenant’s family to lease a unit and a landlord is not required to rent units to people under Section 8.

In a gist, having Section 8 tenants does not change so much of the rules and regulations within your property. You are also given the same authority in keeping the same regulations within the area of vicinity. There are no special treatments made for Section 8 tenants, except for the fact that the government subsidizes a part of thir monthly rent.

The government agencies are only responsible for the eligibility of the tenants for hte program. They also require the tenants and the landlord to complete forms and/or contracts regarding the project. Any other process is in the discretion of the landlord who is given much more benefit and less of a hassle in receiving payments.

For more information on real estate investing go to http://www.annettapowellblog.com

Wishing you much success,

Annetta Powell

Queen of Real Estate

There are perks in becoming a landlord and getting yourself into the property renting business. If you have a property that you want to sell, consider having it leased instead. Maximizing the revenue potential of your property is not only limited to selling it at a high price. As a matter of fact, having it for lease gives you the leverage of retaining your property while benefiting from it.

Continuous Revenue

Once leased, the property can help in creating a regular flow of income for you. Typically, a leasing contract should not be less than six months, and would usually last for a year or more. Within that time period, you can expect payments to be made for your property instead of leaving it lying around or sold for a much lesser price than what you can earn in the long run. However, you should also consider how much of the payment will go to maintenance costs, tax fees and other services that you have to employ in order to keep the business going. Also look into the possibility of having transition periods between tenants. Depending on the location and price, tenants may find your property a good place especially if it is well-maintained. You may also advertise on the classified ads.

Tax Benefits

While growing your business, managing finances related to your property may prove to be difficult but having a closer look into it will greatly benefit you. Due to the interest made on a mortgage, tax deductions will be applied to your annual property tax. Also include the depreciation rate while filing for a tax deduction. You may have this filed fro 27 years from the time of purchase. Put together, that is a pretty large sum. If you think that maintenance cost only takes a chunk of your revenues, it can also help take out a piece of your tax. Other benefits may include having a home office or travel expenses. Ask your lawyer or tax agent for a more detailed guide on these.

Flexibility

There are landlords who are, apart from being landlords have daytime or other part-time jobs. Eventually, this develops as a full-time job with the increase of properties. This gives you the leverage to control your own time and follow a certain schedule that is more suitable to your other day-to-day activities. You can have more time with your family and spend time doing your hobbies. A lot of people get a kick from not having a boss and actually living the life that they want, since a fixed schedule is not applicable. Over time, this should develop in hiring employees that would share the same vision as yours.

Getting into the Real Estate Business requires a great deal of responsibility and self-discipline. If you are a driven individual wanting to gain financial freedom and flexibility in your life, look towards being a landlord and discover the possibilities.

For more information on real estate investing go to http://www.annettapowellblog.com

Wishing you much success,

Annetta Powell

Queen of Real Estate

Property Leasing is a business like any other. There are taxes to be paid, maintenance costs and other expenses that should be dealt with. However, apart from the property, dealing with the tenants is also another of the responsibilities of being a landlord. Not that they should be continuously pampered, as they would appreciate having their privacy even if they are in your property. Foster long-lasting relationships with them to ensure that your property generates a stable flow of income for you.

Transparency

This is possible only when the rights and responsibilities of each are understood by both parties. Knowing your rights as a landlord and understand the rights of your tenants once their leasing contract takes effect is a must. Outline the legal rights and under the state laws applicable to each of you. Contact the rental housing authorities for the guidelines and share this knowledge to your tenants. Discuss the coverage of insurances let them know the extent of your liabilities. Settling the important issues from the beginning gives your tenant an impression that you are honest and trustworthy and that you expect the same from them.

Make Rational Decisions

Increasing the rent regularly without concrete basis might turn your tenants off. If your tenant has been consistently making payments every month without the need for numerous reminders, then you may be considerate in skipping the increase for this year. Keeping that relationship with them ensures a steady flow of income. If an increase is bound to be implemented, provide the basis for your decision. An example would be an increase in tax rates, or other related fees. Document the changes and have the contract updated for future references.

Assure Maintenance

Although the property is already occupied by somebody else other than yourself or your family, it still pays to maintain the property well. Have a regular check up on the heating or plumbing system. Although it is already their responsibility, this will benefit you for the long run. It will ensure that the next tenant will not have issues with your property, thus making it easy to attract them and make them stay. At the same time, the current occupant will not have a reason to leave. You can be sure that the tenants do not have a reason to miss the payments as they can see a part of that monthly rent going to them too. In case they do leave, you treated them well, and had a good relationship with them. This is a good basis for them to refer you to somebody they know. That again, is building a good network from one tenant to the other.

Although taking care of all the paperwork and general maintenance is included in your responsibilities, also ensure that you provide the privacy that is rightfully to the tenants. This will show that you respect them and that your business relationship is something to be cherished and maintained for a long time. For more information on real estate investing go to http://www.annettapowellblog.com

Wishing you much success,

Annetta Powell

Queen of Real Estate

Becoming a Landlord definitely has its advantages and disadvantages. With any business, there is an upside and a down side. If you are considering the real estate business and becoming a landlord, here are a few things to think about.

Rent- One of the advantages is being able to receive your rent money month after month especially if you have a Section 8 tenant (Section 8 tenants are individuals who receive government assistant to pay a majority of the individuals rent) or you have someone renting from you that pays his or her rent. Many investors start out with one or two properties and after awhile, they began to expand and purchase more properties and rent them out. This creates a monthly cash flow for you to continue investing.

Time- Becoming a Landlord is a full time job without the time clock and desk. Because you work for yourself and you are not in an office full-time, this allows you to do other things and accomplish other goals. Of course, being a good landlord is key to the success of your business and this takes a great deal of work but the pleasure is that you don’t necessarily have to be in an office setting for 8 hours a day.  Being able to set up your own office hours and coordinate your own schedule is the greatest part of being an entrepreneur.

Tax Advantage- Becoming a landlord has some considerable tax advantages. There are generous tax breaks offered to landlord who rent out their properties. If you’re a landlord, you can deduct mortgage interest and real estate taxes on rental properties.  You can also write off all other operating expenses such as repairs and maintenance, utilities, landscaping etc.

On the Flip side, there are some disadvantages of becoming a landlord. Such as,

Responsible for the upkeep of the rental units- As a landlord, you will be responsible for the upkeep on all of the units that you are renting out. If you have a tenant that has plumbing problems, landscaping issues and other things that will need taken care of, you have to make yourself accessible and get things fixed right away. You want to be timely and professional in handling any maintenance issues on the property.

Not getting paid on time-Landlords depend on the rent to pay the mortgage and pay for other costs that come along with owning a rental property. If they don’t receive their rent on time, if at all, this could put the landlord in a bad position. Cold calling, stopping by the rental property and court drama are just a few of the things that can happen when your tenant doesn’t pay their rent. Becoming a landlord can mean becoming a debt collector!

Responsible for the safety of the tenants-As a landlord you will be responsible if something happens to your tenant due to your negligence. It is very important that you do all things by the book with promptness and professionalism.  

These are just a few of the pros and cons to becoming a landlord. It is important that you do your research and receive the proper training so that you are able to reap the wonderful benefits of being a landlord!  For more information on real estate investing go to http://www.annettapowellblog.com

Wishing You Much Success,

Annetta Powell

Queen of Real Estate