So you have decided to make some extra money by renting out your home in the Indianapolis Area. Before making the leap, there are a few things you need to consider.
Landlord/Tenant Laws
The investor may be held liable if there is a preventable incident caused by a safety or health violation. Do you have to have carbon monoxide detectors? How many smoke detectors are required? Where do they need to be placed? Do you have appropriate placement of stair railings or are there tripping hazards present? Do the locks have to be changed in between tenants? When is rent due and what legal late fees can be charged? Then there is the question of security deposits. Whose money is it? How does it need to be held or accounted for? When does it need to be returned and what types of damage can be paid for out of the security deposit? How do you make a claim to be reimbursed for expenses incurred by the tenant?
A good property manager can help navigate these issues and ensure that the proper steps are taken and protect you from a variety of liabilities.
Taxes and Insurance
You will lose the homestead exemption for your property taxes once the home is recorded as a non-owner occupied property. In essence, this will double your property tax obligation. If your investment property is in Indianapolis, you will also need to register the property as an investment property. Having an investment property without registering with the City may expose you to penalties and fees.
Marketing and Showing your Rental Property
Because the market andy lease dozens of homes each month, they can afford to pay for this type of advertising. A single homeowner or investor may not want to pay the hundreds of dollars to ensure that your home is getting views. Many Indianapolis property management companies also have established social media accounts where prospective tenants can see the listings and pass it along to their friends.
After you have a successful listing and proper signage, you will likely have to begin fielding phone calls and emails. They will want to tour the property. This can be a very time consuming process as you will have to work around their schedules. Many times scheduled viewings may not even show up. Sometimes after they show up, you find out that they have had multiple evictions, don’t have a job, or other things that will likely disqualify them from renting the property. This ends up being a big waste of your time and can be very frustrating. Learning how to ask the pre-screening questions before scheduling can save a lot of time. You may also want to confirm the appointment before driving out to the investment property to ensure that you will not be wasting both your time and gas.
Tenant Screening
Leasing
It is a good idea to have your lease reviewed by legal counsel. This will ensure the lease protects your rights as well as is compliant with your state and local laws and ordinances. You will need to plan spending two to three hours finding a lease, as well as $100 to $300 for an attorney to review your lease to ensure that it complies with regulations.
Property Management
Real Property Management Indianapolis Metro is an established Indianapolis property management company. We have years of experience in the Indianapolis area. RPM has also developed a proven business model over 25 years in over 270 markets. Managing properties in Indianapolis or any other market can be difficult. Using a professional property management company can help you avoid these issues all together. Not only does property management save you time and make things more convenient, it may also save you headaches and money that comes along with those headaches. Whether you are looking to rent your home out of necessity or to create a retirement income, considering an Indianapolis property manager is a great way to go.