With the steady rise in home prices, it’s easy to see why some Randolph County homeowners find buying an additional home an appealing option. Having an investment rental property brings the appeal of a growth investment along with an increase in cash flow.
But along with the rewards that come with being a landlord, there are also risks involved. When renting your Randolph County home in NC, there are some common mistakes that first-time landlords make that you can avoid.
1. Fair Housing Violations
Be careful in the language you use in your marketing ads which could easily violate fair housing rules against discrimination. Avoid phrases or words that single out a specific profile or group like “suitable for couples,” “family-friendly,” or “for singles only.” Violations of the fair housing rules could cost you up to six digits, so make sure your ad describes your Randolph County NC home for sale, as well as the neighborhood, in simple and generic terms. Be prepared to accept the offer of the first qualified applicant that meets your terms.
2. Credit Report Mistakes
Another common mistakes of landlords who rent a home in Randolph County NC is not being able to properly qualify applicants. Instead of asking them to submit their own credit reports, which is risky nowadays, run credit checks on them yourself. Also run an eviction check for applicants over 18 years of age. You want to see all the applicants’ history before you allow them to live in your Randolph County home.
3. Mistakes with Security Deposit
Another first-time landlord mistake is accepting too much or too little security deposit. If you take too much, you may be violating state violations. If you take too little, you won’t have sufficient protection.
Renting a Randolph County NC home can help you build your wealth, but you must take your responsibilities seriously as a landlord.
If you are uncertain about legal requirement, then get the services of a professional property management agency to help you out.
If you have concerns on these matters, I can make recommendations for you to make the most profit out of your Randolph County home.