Some serious questions to ask before jumping in.A buyer recently asked me what type of property I would purchase. Personally, I like the fact that Maui allows legal rentals that help pay the mortgage. However, this involves managing and maintaining a rental property, and being a landlord is not for everybody. It can be rewarding, as well as a lot of work at times.
If you are thinking about becoming a landlord, here are just a few questions to ask yourself: How much rent will you charge? If the rental market softens, can you afford to collect less rent?
If the rental is on your property, are you okay with less privacy? What will be the rules around guests, out-of-town visitors, parties and parking? Will you accept pets? Will you prohibit smoking on the property? What will you do about illegal drug use on the premises? Will the tenant share your washer and dryer? What about mail? What amount of deposit will you accept?
Will you manage and maintain the property yourself or hire a property manager? Will you be available for your tenants to call you anytime if there is a problem? When is the rent due, and if rent is paid late, what is the penalty, if any? Are you current on the landlord-tenant laws for the state of Hawai‘i?
There are no right or wrong answers to any of the above questions; just be clear on what you need as a landlord prior to renting your property. If you are a first-time landlord, I strongly recommend you hire an attorney or property manager to review your rental agreement. Whether you are renting to a stranger, friend, or family member, always put your agreement in writing prior to the move-in date.
Chris Bakeman, PB (principal broker), has been a realtor since 1997, working with both buyers and sellers. Now with her own company, she offers an affordable way to sell your home starting as low as $500 on the MLS, or full service for only $4,000. Call 283-6126 or visit www.chrisbakeman.com.