The Price of Being a LandlordDue to the economy many people are finding it very hard to sell their house, so a lot of them are deciding to hold on to it and become landlords. However, being a landlord, as msn.com puts it, has many hidden costs that are associated with rental properties. For example insurance costs for rented homes. When a homeowner rents out their place, his or her status goes from primary occupant to investor. That in turn means that the house needs to be insured with a special landlord insurance policy costing more. According to the Insurance Information Institute, it’s about 25% more than a regular homeowner’s insurance.
If you plan on becoming a landlord, the All My Sons of Maryland movers found out that legal and administrative fees can be involved. These extra costs can be for learning your rights as a new landlord, for drafting legal documents or rental agreements and so on. You might be working with attorneys that charge a flat rate or on an hourly basis. In the case of an eviction or legal dispute, costs can be even higher and they’re certainly in addition to the leasing agreement. Administrative fees can include paying for services likes running someone’s credit or interviews for potential tenants. There are property management companies that can also work with you. Some municipalities ask owners to register their rental homes and send an inspector to ensure everything is up to code. If there are problems or repairs needed, that can result in more costs.
Some municipalities also ask new landlords to attend daylong classes for covering topics like how to spot and report illegal activity.
To be able to attract tenants, many landlords have to spend money on paint, repairs, little upgrades here and there so they can find reliable tenants who’ll also take care of their house as well. There also might be some maintenance problems that the landlord could live with but that renters won’t want to. Think a leaky toilet, a higher security lock, even cleaning services when your tenants move out and you have to look for new ones.
More taxes is another hidden cost of becoming a landlord. Many places have homestead exemption benefitting owners who actually live in their homes. But if your property becomes an investment property you might have higher taxes and not get that tax break.
If you decide you still want to become a landlord, rent out your place and move out somewhere else, just call the Maryland local movers when you’re ready to move out. We’re part of reputable local moving company with moving offices in several states, even Mexico. With the All My Sons of Maryland moving services, your moving day will be over in no time.