Real Estate Education

Rentals have always been known as 'Good Investments". Real Estate education courses always show the benefits, someone else paying a mortgage for you. Telling you that sometimes you even make a bit of money off of the renter.

The problem comes in when you do not get paid from the renter, or when the renter ends up destroying your apartment/house/trailer/etc..

Through my real estate education I have learned some easy steps to alleviate the fear of having rentals.

1. Rentals are Hard Work.

You have to realize that rentals will be maintained by you. Always put your rent at a minimum of $100 over the mortgage.

This will at least allow for $1200 in extra income per year. This income always comes in handy when dealing with problems left by the renters.

2. Rentals can be easy to Maintain

Always, always, always, do as much background checks as possible on your new renters. Never think that they are nice.

Check in on the people at least once every three month's to make sure they aren't destroying your property.

Make a casual visit to collect the rent, or even go so far as to schedule a walk through, explaining to the tenant it is for their benefit, because if you know that the place is clean all their security will be returned to them.

3.Assume that the people renting your house are messy, will allow Jr. to write on the walls, won't clean the fridge, or stove, and will never care about the carpet or the new laminate floor just put in.

What this mindset will do for you is give you understanding when and if you receive a mess when your tenants move out.

4.Make sure part of the rental agreement is at least two month's security. This will pay for new carpet and Painting materials. If you have to hire people then dip into the $1200 you made on the people for the year.

5.Government programs can help rent out your property;

Providing housing for a family in need is often as rewarding as receiving the rent check each month.

The Section 8 Federal Housing Assistance Program administered through HUD and the Public Housing Agencies (PHAs) help low income families, the elderly, and people with disabilities to pay for decent and safe housing is a program that is a good for everyone.

Section 8 recipients represent a wide range of society. You may find a hard working single parent, grandparents raising a second family, medical students or a disabled veteran. With

Section 8, individuals can rent housing of their choice in communities of their choice.

Financial assistance is based on household income and the area's cost of housing.

The local PHA establishes a Section 8 voucher "payment standard" which is between 90% and 110% of the Fair Market Rent (FMR).

The Section 8 monthly subsidy is the difference between 30% of the household's monthly adjusted income and the Section 8 "payment standard".

The subsidy is paid directly to the landlord by the PHA. Any remaining difference is paid by the tenant directly to the landlord.

I have found that it is a good way to try out the Lease with an Option market because most Landlords who rent to Section 8 Housing individuals reap their rewards early and like to get out of the rental game, or to move on to others.

Rentals can be a headache but they do not need to be. If you follow all the steps you will make money and help people with housing.

If you have already found a property that meets your return requirements, this does not mean that you can sit back and cash your rent checks just yet.

It is imperative you check all your available the investor tools and make sure you properly screen your tenants and sign them to a lease that mutually protects your investment as well as your tenants.