Owning rental properties offers a great opportunity to earn a relatively passive income. However, it may not be the right venture for everyone. If you are looking to invest in your first rental property for the first time, taking these four factors into consideration can help provide some clarity to the decision.
1. Locating and Screening Prospective Tenants
Depending on the local market condition, prospective tenants may be abundant or few and far between. Think about how you are going to attract applicants and then how you will screen them to make sure they are qualified. As a minimum, most landlords will run a background check, contact references and check with a consumer reporting agency to determine creditworthiness.
2. Following Fair Housing Laws