New Landlord Has Questions
I am a new homeowner, and have been interviewing prospective tenants for about 2 weeks. I finally came accross people I feel comfortable with, a family with 3 children.
What precautions should I take to ensure my own protection as well as the well-being of my property?
I am renting a 3 bedroom apartment in a two-family home located in NJ. The tenants will have access to the driveway, garage, and backyard. They also will have use of appliances (washer, dryer, BBQ, refrigerators, stoves). In their unit is also located the oil heating unit as well as the electrical boxes for both apartments.
I have not yet decided whether to do a month to month or year lease.
Any suggestions or advice?
Hi Kathy,
I just got into this biz myself, about 6 months ago. I would recommend putting title to the property in the name of an LLC, or a land trust w/ the LLC as the beneficiary. This way, if your tenant falls and wants to sue, they can't come after your other assets. Also, if your area does not have a standard lease, talk to a lawyer about a good landlord-friendly lease. Finally, try to get a good security deposit (1.5 months) so you have some cash if the tenants break something.
Hope this helps. I would definately talk to a lawyer about the LLC and othey ways to protect yourself.
Ted
I'm a newbie. I'm planning on building a multi-family next spring.
Go to Nolo. com and check out "Every Landlord's Legal Guide."
I bought their book for NY landlords. It was superior. For example, they explain how to avoid being sued for housing discrimination. I adapted their lease and other forms to fit my needs. I have a short list of questions now ($), rather than a long list ($$$), for when I have my lawyer review my lease, etc.
I would imagine their national book is as good as the NY book.
Jim