The ultimate goal of investing in rental property is turn a profit and if at all possible provide a pleasant experience for yourself and prospective tenants. To make sure that you achieve these goals it is essential that you follow several critical guidelines.  

1.  First, always make sure that you check references. This can be a burdensome step that many landlords overlook if they feel as though they have a good instinct about the tenant when they meet with them. Not checking references; however, can lead to a number of problems. You can uncover a wealth of information about potential problems before you rent to a prospective tenant.  In a large majority of condo and loft developments in Minneapolis this will be required by your association.  Depending on the association they may require you use a specific 3rd party background check company such as RHR.

2.  Always make sure that you have everything in writing. This is to protect not only your rights but also the rights of your tenants as well. Everything from the code of conduct you expect tenants to abide by while renting your property to the rental application itself should be in writing.  Condo documents from the condo or loft complex you invest in will need to be provided to the renter prior to move in.  This will include your rules and regulations in the building.

3.  You will find that you have better success with your rental property if you take the time to ensure that your condo or loft it is both secure and clean. Not only will the property be more visually appealing but these actions will also assist you with property liability.  If you live in a smaller complex with less of a formal entry or in a ground floor unit you may also want to take additional security measures. Extra security may be able to lower your insurance premiums as well as provide an incentive to quality tenants to rent your property when they know it is secure.  This will of course likely be appealing attributes for a prospective tenant.

4.  If you make the decision to hire a property manager, take the time to interview prospective candidates very carefully. Property managers can be quite helpful if you do not have the time to tend to all of the details yourself. The wrong property manager; however, can cause you tremendous problems. This means that you will need to hire a thoroughly responsible and professional individual to handle the job.  Property management typically ranges from $75-$150 per month and can save you time and headaches.

5.  Always make sure that you follow all applicable regulations in the renting of your investment property. The Fair Housing Administration Act provides precise regulations in order to prevent discrimination. If you violate those regulations you could find yourself facing a lawsuit that is costly in terms of time as well as money. The best course of action is to take the time to do your homework and consult an attorney experienced in real estate matters for guidance regarding the FHA as well as ensuring that you have the proper forms.

Following these guidelines will help you to retain quality tenants and avoid any potential legal problems.

For more tips please visit www.MikeSeebinger.com