Just Ask Julie

BY JULIE PEK

Tattler reader Pat asked me “What’s it take to own an investment property?” Since I don’t own investment property, I asked a past client of mine. She bought one of the Villages townhomes when she was 23 years old for herself and enjoyed living there until she got married. Instead of selling, she decided to turn the property into a rental and quickly became a landlord.

You can hire a property management company to handle the details of the rental, but she and her husband have done it on their own for many years. Their success is built on their pride of ownership and positive attitude toward tenants. She believes in treating tenants with respect and kindness. And as a result, she had long-term tenants – one who rented for 20 years and became family to her.

In addition to being organized, here are some basic things to consider when getting into the rental business: (1) well-maintained property; (2) budget for unexpected costs; (3) understanding of landlord/tenant laws; (4) landlord insurance; (5) screening system for applicants; (6) lease agreement; (7) payment system and plan for issues arising from nonpayment; (8) being responsive and willing to be on call for emergencies.

Owning rental property is not a passive income stream with tax benefits. It takes a real commitment to make it work. Talking to an experienced landlord is a good first step in understanding the pros and cons of investment property.

If you have a question about real estate contact me at juliepek@cox.net or 602-316-1875. If I don’t have the answer, I’ll find it for you!