What Risks Are Involved In Being A Landlord?


If you are to become a landlord,What Risks Are Involved In Being A Landlord? Articles you should know that this isn’t a decision you should make without some serious consideration. As you become a landlord, you have to be prepared for all the responsibilities that you cannot simply overlook. First of all, looking for and screening a reliable tenant are a difficult process. There will always be risks as well in terms of the legal and financial aspects of the business. You would also need to commit a considerable amount of time in this career. So before you finally decide to pursue this path and invest in this kind of business, it is important that you first understand all the risks that come with becoming a landlord.

Legal Concerns

The most obvious legal concerns that every single landlord should take into consideration are related to safety and insurance. Landlords must also be knowledgeable enough about Fair Housing Laws. Being unaware or uninformed about these things is never an excuse. Keep in mind that once you make up your mind to rent a property, you must be responsible enough to know and comply with the law.

Another important legal concern in this business is discrimination. As a landlord, you must be careful about refusing to accommodate an individual who is handicapped or a protected minority. It is every landlord’s responsibility to accept these types of people into their rental properties.

Financial Concerns

One of the most common problems being faced by landlords is financial. Every landlord needs to incorporate into their budget certain expenses like taxes, insurance, homeowner’s association fees, repair fees, and even New Orleans property management expenses. It is important for landlords to have money in their savings intended for repairs and even vacancies.

Responsibility of Landlord to Their Neighbors

It is the landlord’s responsibility to oversee all the tenants’ activities in the property being rented. Otherwise, he will run the risk of being held liable for all the irresponsible actions of the tenants. For instance, a tenant is caught selling illegal drugs to neighbors, or perhaps a tenant’s dog bites another neighbor, the landlord may be the one to blame and be held liable. Aside from having to comply with all the laws in relation to renting a property, landlords must also make sure that their tenants are aware of such laws too. This explains why it is crucial for a landlord to do a thorough screening of their tenants.

Small Business Reporting

Landlords have the responsibility of completing flawless and accurate tax returns. What this means is that every property owner or renter must stay on top of all the expenses and must also have a copy of all the receipts for tax purposes. Since renting a property is a business, every landlord is obligated to submit a report of their rental income. This is actually one of the most crucial responsibilities of landlords, and also among the most common downfalls of some property owners. The issue of business tax is something that can never be taken for granted.

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Author: Piyawut Sutthiruk

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