Owning and renting properties has become the way to riches for more than one landlord, but before you head down that path to becoming a landlord be sure you know what it takes.
- You’ll need to know that the rate you can ask for your property in your market will be enough to cover your expenses.
- Equally important is to be sure you know what those expenses are! You need to cover not only your monthly mortgage, taxes, and insurance; you also need to plan for routine maintenance, vacancies between renters, and unexpected emergencies.
- You’ll need to be sure you are aware of laws regarding Fair Housing, the best way to attract and keep good tenants, and what to do if you do have to evict.
Once you have all the facts, you can make an informed decision and, if you choose, become a successful landlord!
The Fair Credit Reporting Act is Federal law regulating the collection, use, and distribution of consumer credit information.
FCRA was enacted in 1970, and substantially amended in the late 1990s and in 2003, and forms the basis for all consumer credit rights. The law is intended to ensure privacy and accuracy of credit reports.
FCRA regulates activities by:
- consumer reporting agencies
- any person or company providing information to those consumer reporting agencies
- any person or company using the information for credit, employment, or insurance purposes.
FCRA also provides consumers the right to periodically review and have errors corrected in their credit records. The Fair and Accurate Credit Transactions Act of 2003 allows consumers to have easier access to view their reports and dispute incorrect items.
Eviction can be a long and painful process. It is probably worthwhile to try to resolve disputes with the tenant before beginning eviction.
Discuss the problem, see if there is something you can do that will help, but also be very clear about the steps you will take if necessary.
Be sure to document everything you do, and conversations you have, so that if you do need to evict, your paperwork is in good order (including lease and documentation of missed rent and all attempts to resolve the situation).