So you purchased a new home but want to keep the old family home too? Today you might consider renting the old family home and becoming a landlord. Tomorrow, you might regret this day if you don’t make careful decisions.

Congratulations on your new business venture! Wait? Did I say business? Yes I did and there will be more on that later. Beside business stuff, there are many pitfalls that the new landlord needs to watch out for.

First pitfall might be friends and family. You might have a family member, let us call him Randy Renter, and he can’t wait to rent your old family home. This is a perfect situation, right? You have known Randy all your life, so why not let him rent your home? Since he is family, do you really need a signed lease? Also, you might feel pressured by other family members to allow the Randy Renter to move in right away.

There are a couple of scenarios that can play out in this situation.
Randy Renter might not qualify for the home. He may say he makes enough money to pay rent, but when was the last time you saw a paystub from him? I have never seen a paystub from any of my cousins, siblings, aunts or uncles. Randy Renter can move in and stop paying rent because he can’t afford it. If he can’t afford rent, he can’t afford to move to a new home. So he will sit tight and force you to evict them. This will cause a rift in the family and cost you a lot of money in lost rent, damage and fees. On top of that, if you don’t post notices correctly, you might have to start your process all over after months of delays. That is only if Randy doesn’t dispute the eviction with the courts. If the tenant disputes the eviction then you have to go to court and that can be more expense and delays. Especially if you withheld requested repairs until rent is paid. If you did this, you could lose your court case and the tenant could be granted permission to stay.

If you do your eviction with an attorney, which is highly recommended, you will pay close to $1000 in attorney fees and court costs, just to get your home back.
Then you have to do repairs and rehab just to get another tenant to rent. This is usually when I get your call. You are frustrated and broke. This business venture isn’t making any money and if you are feeling defeated now, wait until you get your property tax bill after you lose your homestead.

While this is a worst case scenario, it happens all too often. You might be a great business person but there is always a learning curve when it comes to starting a new business. My suggestion would be, find a good, professional property manager and let them manage that home for you.

When looking for a property manager, there are some things you should consider. First thing to consider is experience. Ask how long the property manager has been in business. While they might be new to property management, they might be with a company that provides systems and education for their new managers. The company that stands behind the property manager is very important. Is the company primarily a property management company or is it a primarily a sales company? Real Estate is always fluctuating and new laws are always being adopted. Choose a company that specializes in Property Management as they will keep up with the new Landlord Tenant laws for your area. You should use someone who is also a Realtor. A Realtor has certain standards and education that they must keep up with. Choose a Realtor that specializes in Property Management. Your sales Realtor should be able to give you a few recommendations.

My name is Alisha and I am a professional Property Manager with All County® Suncoast. All County® has been in the property management business for over 2 decades. We are the premier property management company that uses the most advanced technology to manage single family homes, condo and small apartment buildings. All County® is also a franchised business with franchises all over the United States.

As with many areas in the United States, rental demand continues to climb in the St. Petersburg, Florida area. The latest data from the Federal Reserve suggests that now is a great time to be a property owner since during the last three months of 2015 property owners’ rental income amounted to around 4.3 percent of the U.S. national income. Meanwhile, key takeaways from the “Emerging Trends in Real Estate” report published by the Urban Land Institute and pwc has us looking forward to successful investments for properly managed rental assets.

What the analysts are saying

(You can download and read the full report here):

• Prospects for the multifamily rental sector still rank “well” for 2016.
• Due to the size of generation Y, demand for both rentals and ownership housing is poised to expand.
• Investment strategy for single-family home rentals is changing from the “flip” strategy to becoming operating businesses, as more people opt to rent by choice rather than necessity.
• Investment prospects for single-family homes rank “fair” for 2016
• Some older home renters are opting for luxury rentals.
• Domestic and global capital continues to flow into the U.S. real estate market.
• “The industry is trending toward more intensively active management…”
• Interest rates will continue to rise.
• “The Supreme Court has affirmed that local communities can take legal action to address disparities in housing, even if they are the unintentional result of actions rather than conscious discrimination.”

Why St. Petersburg, Florida?

• According to reports by ApartmentList.com, rent in Florida is increasing at a higher rate than the national average.
• HomeVestors and Local Market Monitor have ranked St. Pete -Tampa one of the top ten areas in the United States for real estate investing.
• Millennial populations tend to rent for longer periods than did their parent and they add to the overall rental demand.

What if my rental is vacant?

Selecting the right tenant for your rental is a critical first step toward maintaining the value of your investment property. Qualified reliable tenants play a significant role in protecting against undue deterioration.

If your rental has been on the market for a significant amount of time, consider talking with All County Suncoast Property Management about what changes can be made to decrease the amount of time it takes to find a qualified tenant. While every situation varies, there is a short list of frequently cited improvements that can often lead to more rental applications.

• Give it some curb appeal. Spruce up the yard or to trim the trees and bushes. A freshly power washed driveway can also make a big difference.
• Clean the carpets. A professionally steamed and shampooed carpet can make a rental feel like new again!
• Add some paint. A little bit of outdoor and interior paint can go a long way.
• Price it right! If your rental is drawing in the kinds of applicants that you are looking for, talk with your property manager to ensure that the asking monthly price is competitive and compares to other similar properties in your area and that are relatively the same age.

All County Suncoast Property Management can help you get your property rent ready and help you take advantage of the St. Petersburg, Florida area rental market. Call now to learn more about our annual management services and how our professional property managers can make a big difference to your bottom line.

It is important to be aware of changes to real property law and contract law. Perhaps what is more valuable is to have a lease reviewed by a lawyer who specializes in landlord/tenant law. Our management professionals always make use of a carefully worded St. Pete, Florida lease agreement that has been reviewed by an attorney.

Recently, major changes have been made to landlord/tenant law in places like California, Wisconsin and other parts of the country, which has social media all abuzz. In an effort to equalize the position of property owners and their tenants, landlord/tenant law is constantly evolving and landlord’s rights and landlord’s responsibilities in St. Pete and elsewhere are constantly changing. For instance, prior to March of 2015 landlords in Wisconsin were obligated to make arrangements for storage of any personal property that belonged to an evicted tenant. To fulfill such an obligation, landlords in that area needed to notify the sheriff’s department, hire a bonded mover, and give notice to the evicted tenant. The revised law now allows a landlord to presume that property left behind and to deem it abandoned. There are exceptions to the rule, of course, and this is just one example of how estate law can and has evolved in places around the country.

The lessons that we can take from trending news topics like those out of Wisconsin make it clear that your property manager’s role goes way beyond simply filling unoccupied space. At All County Suncoast Property Management, we can proudly say that our expertise in tenant placement, lease execution and lease enforcement will help to protect your property investments for years to come.

In order to keep in line with the ever changing rules, we regularly update the Florida lease agreement. A well written lease allows All County Suncoast Property Management to enforce lease requirements, and in the case of an escalated issue, a well written lease could mean the difference between winning or losing a court case. Our leases are well written and tenants’ responsibilities are clearly defined. St. Pete, Florida property owners can entrust All County Suncoast Property Management to safeguard your property investment and to allow you peace of mind!