My wife and I own one rental home. 3 years now, so far so good, looking ot buy another one this year. Its quite easy actually, especially with venues like kijiji and craigslist you have free advertising which is awesome.
1st thing this is an investment, as such don`t get emotional, don`t take things personally, it`s an investment not your home. Search google for rental leases and use them as a template to create your own. A quality lease can be your best friend in a rental situation. No matter how minor the detail make sure it`s covered!!! Despite horror stories some landlords will tell you, there are just as many laws to protect landlords as there are for tenants. If you hear someone say they had difficulty getting rid of a bad tenant, they were to passive about it, didn`t try hard enough and are simply not as smart as the deadbeats they were trying to get rid of.
Interviewing prospective tenants is key, you can learn alot about someone from this. Create a rental application, and let them know you need referances from previous landlords, you WILL perform a credit check(if you choose). Typically if someone has had credit trouble or if they do have bad credit they will just tell you......this is a good start they are being honest.
One thing to note depending on where you live it may be ILLEGAL to ask for first and last months rent or other security deposits. You DO WANT first and last so if a prospective tenant challenges this, keep searching til`you find an agreeable one, you will. Typically you can`t just pop in to check out the place unless you are doing the maintenance. However depending on your area fire alarms must be checked quarterly, make sure thats in your lease. Great way to make sure the tenants are keeping the property in good repair without appearing nosey(it is their home afterall, you just own it).
Go with your gut. If you have any sort of off feeling about a prospective tenant, simply turn them away.
I personally do not rent to students, however you have stated your in a college town so that may be your intent. I would suggest rather than rent to 5 people at xxx a month. You choose 1 person to have on the lease and let them know they can rent the other rooms up to your maximum occupancy choice for as much as they want, but they are on the hook to you each month for the amount you agreed upon$ xxxx plus utilities. Always have the tenant pay utilities. Always take payment in the form of post dated checks. If you sign a lease on Feb 1, you should collect 12 checks dated for the next 12 months. Keep a small acordian file for your rental property, keeping track of all receipts for purchases relative to the rental property. There are alot of great tax benefits to owning a rental. Make friends with a good accountant and take advantage of all that are available.
You need to insure this home as a rental and INSIST that the tenants also have renters insurance.
I could go on all day, pm me if you need any questions answered. Rentals are as great investment for your future, ignore any body that has nothing but terrible things to say. You get out what you put in. : )
