Is Becoming a NJ Real Estate Landlord Right For You?

By
Real Estate Agent with RE/MAX The Real Estate Leaders

Is Becoming a NJ Real Estate Landlord Right For You?

What you need to know about becoming a NJ Real Estate landlord

Being a landlord is a great way to make money if you go about it the right way. It involves knowing the market and when and where to purchase the best property in order to get the most amount monthly from the best tenants. Mostly everything you will potentially have to deal with involves time and money when you are a NJ Real Estate landlord. Below you will find the step-by-step process associated with being a landlord:

1. Locating the property

The most crucial step in purchasing income-producing NJ Real Estate is finding the right property in the right location for the right price. Purchasing an investment property without having these three characteristics will likely lose you much money in the long run. If you have the money, skill and time, buying a home in need of renovation would be your best bet as this would be a great deal in terms of profitability.

2. Getting the property ready for occupancy

Once you have purchased the NJ Real Estate, the next step is to ensure it is in habitable condition. Most times, this would require new carpeting and paint. If you have purchased a home in need of improvement, this will also need to be taken into account with replacement of such items as appliances and windows.

3. Know the laws

Before starting your search for tenants, it is important to familiarize yourself with the laws governing your state such as the U.S. Department of Housing and Urban Development’s Fair Housing Act prohibiting discrimination of any kind. Eviction is always a lengthy, last resort solution that no one wants to encounter, but nevertheless you must know the process and how to protect yourself. Also, there are generally two landlord-tenant laws that apply to every state:
• Tenants obtain the right to live in the property as long as the rent is paid on time each month, and;
• Tenants obtain all ownership rights to the property with the exceptions of selling the property or willing it to a third party.
It is a good idea to set the standards you desire in a tenant including rental rates, security deposits, number of allowable occupants, utility payments, credit history and minimum income requirements.

4. Searching for tenants

The internet, newspaper and NJ Real Estate print publications will be the way to go in order to find tenants for your investment property. Keep in mind that running an ad in a reputable periodical will generate the most qualified prospective tenants for the most part.

5. Keep up with maintenance

The best way to ensure you keep happy tenants and save yourself money in the long run is to be certain your investment is constantly maintained and checked up on. Being aware of and repairing problems such as a small leak can prevent having to tear up and replace flooring if water travels beneath floorboards. Also, if you are a landlord living out-of-state and do not always have the time to supervise the NJ Real Estate property, it might be wise to hire a property manager to ensure everything is going smoothly at all times while you are not around. The typical duties of a property manager can include cleaning the property, receiving maintenance related calls and collecting rent payments.

6. Protect your investment

Inform your insurance company that a tenant will be occupying the premises as your coverage will be liable to change in order to protect you the landlord from legal disputes or possible injuries that can occur on the property. It is also important to remember that by owning an investment property you are eligible for tax benefits as NJ Real Estate rentals provide more tax benefits than nearly any other investment. Tax benefits to take advantage of include: interest, depreciation, travel, repairs, insurance and theft as well as legal and professional services.

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All the best,

Christopher Walsh

 

RE/MAX The Real Estate Leaders

Realtor / Owner / Team Leader

Mobile: 732.309.5502

Email: sell@teamchriswalsh.com

Web: www.TeamChrisWalsh.com 

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