Risks when Renting Cheap Homes
- Author John Article
- Published December 27, 2010
- Word count 413
If you are an investor that purchases cheap homes to rent out to people then there are many risks that you are susceptible to. These risks include finances, the home, and the tenants.
One of the biggest risks that you take when you purchase low cost or foreclosure houses to rent to people is the financial issue. You must be sure you have the money to fix a place up to make sure it is livable. You also need to be sure that if you cannot find a tenant for several months you will be able to absorb the costs until you get someone in. Many investors fail when renting houses because they take too long to find a tenant that can pay them any money. Plus, some states take a really long time to have a tenant thrown out of a house due to non payment. Always research this and write it in the contract that if they are late you can have them out in 14 days. If you have a contract then it will be valid.
The house you buy itself is very important when you want to use it as a rental property. This is because if it is not in a proper livable condition you could be in trouble. If you put a tenant in a house before it is considered acceptable then you will be required to make the repairs immediately, even if you don’t have the money. This could put you in a really bad situation. Make sure the house passes an inspection before you put a tenant inside of it. Also, you may want to put in your rental agreement with the tenant that minor repairs can be fixed by the tenant at their own expense.
The tenants that you put in a house need to be reliable. If you rent a house to college kids that party all of the time then you can be sure the house is going to have serious damages that need to be repaired when they leave. Plus, are they going to pay for their own damages to you? Most likely not.
There are many risks that you take when you purchase cheap homes in an effort to rent them out to people. Always consider the price of the house, the tenants you choose to move in, and the condition the house is in and any repairs that need to get done. This will help you be more successful.
Joseph Smith has been educating buyers on the finer points of Cheap Homes at BankForeclosuresSale.com for over five years.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- How Architects Are Shaping Sri Lanka’s Real Estate Boom
- Directing Las Vegas Homes for Sale: How Live Better in Las Vegas Guides Buyers to Success
- Understanding the Renters' Rights Bill: Key Changes and Timeline Explained
- Costs of buying property in Spain - IMS Mortgages
- Three Easy Steps to Sell Your San Antonio House Fast!
- Discover Your Dream 55+ New Construction Home Community in the Greater Tampa Bay, Florida
- Article on Mortgage Lenders and New Homes Mortgage Helpline
- The Advantages of Utilising Professional House Removals Services
- Manilva: A Rising Star in Off-Plan Property Investments
- Comparing Removals services-in-wandsworth: Your Ultimate Guide
- Port Orange -- The Perfect Twin Sister to Daytona Beach
- RE/MAX Ace Spearheads Innovative Housing Solutions in the GTA
- Should You Waive the Home Inspection Contingency? Weighing the Risks and Benefits
- Avenir: Embracing Lifestyle and Community in Palm Beach Gardens
- Serbian Real Estate: A Tidbit for Investors
- Discovering Life in Pattaya, Thailand: An In-Depth Handbook for Expatriates
- DEBUNKING HOME REPORT MYTHS
- Don't Let a Financial Hardship Force You to List Your House
- Safe Water Starts at Home
- Don’t let Missing Insulation Lead to High Energy Bills
- Property Investors Amidst Favorable Swedish Krona Rates
- How Real Estate Professionals in Houston Go Above and Beyond for Home Sellers
- Reasons to invest in real estate in Cyprus
- Top 10 criteria to select an Insurance Claim Appraiser
- Comprehensive Home Inspection Checklist for Buyer, Seller, and Homeowner
- DEBUNKING HOME REPORT MYTHS
- North Carolina Real Estate Market: Shifting Market Dynamics on the way?
- Selling Your House in Winter: Effective Tips and Strategies for Success
- Would you like to have a Free House?
- 5 Ways To Know You're Ready To Buy A Home