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With the real estate economy in shambles, many would be home flippers have been forced to ditch their plans to sell and take up the business of landlording. In addition, home owners not able to sell their homes after they have moved are also now landlords.
There are more and more landlords across the entire United States. "We have become a landlord nation," says attorney and author Thomas E. Moorhead.
Unfortunately the rental housing business (being a landlord) is one of the most regulated businesses in the United States and not knowing the rules and regulations can get you into trouble fast.
There are many areas of liability for landlords, and those who rent property, even their own homes, should treat it as a business. While renting your home or investment property may be your only option, you should not make the decision lightly. You should get the facts as soon as possible, and learn all the rules and regulations for your area. There are certain federal and state mandated laws that will apply to any property once it become a rental. You should protect yourself with the right rental/lease paperwork, know how and when to evict, and which expenses are covered by the tenant instead of you, the landlord.
For those new landlords who want to learn the rules, you might want to check out a new book by Moorhead entitled "Owner's Manual for Landlords and Property Managers." Moorhead has been a practicing attorney for over 30 years, and in his book he shares his vast experience in assisting landlords and property managers with various legal issues.
His book offers a step-by-step practical approach that guides both the beginner and seasoned landlord and property manager through the entire renting process. It includes legal points, actual cases, and useful tips and techniques for understanding the ways laws are applied as well as how to prevent a lawsuit or legal claim.
The business of landlording is not for the faint of heart, and it should be treated seriously like any other business, paying close attention to the financials. An accounting system should be used to track the property's income and expense data, and should be reviewed every six months. Landlords should also have a conversation with their tax professionals to discuss tax issues in regard to passive real estate investments.
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