Preparing to be a Landlord in Las Vegas
One of the rarely noted reasons for home investment is to obtain a steady source of income. Most people buy a luxury home with the intent of making its value grow over a certain period before selling it later. Those who are looking for steady income from their property, on the other hand, tend to rent or lease out their home. Leasing or renting offers a good chance of rapid return of investment in an active market filled with people looking for alternative real estate options. That’s a reason why luxury property management in Las Vegas is very popular.
Home rentals and leasing entail a different approach to owning a home for personal use. Things can be confusing for prospective landlords, especially with the processes they have to follow and the papers they have to file. Nonetheless, the process can be easy if the prospective landlord knows the basics.
Before Signing On
The prospective landlord may already be thinking ahead about what procedures to follow to register the property as a rental or leasing unit. This isn’t exactly a bad thing; rental property ownership requires a lot of planning and decision-making. Gaining more information regarding luxury home rentals will help the prospective homeowner in choosing the right course of action.
However, there are other things to consider before even going into the pre-preparation phase of home rentals. These factors will give the prospective homeowner an idea of whether he or she should go ahead with his or her rental ownership plans or not.
- Financial Considerations: The aim of renting out the home is maintain a source of income. That is why the prospective landlord should consider the financial implications of putting the property up for lease. Take into account the possible extra fees that would be imposed once the home is turned into a rental unit. Consider, also, the taxes that would be added to the property.
- Risks: Property rentals are businesses, and like any kind of enterprise, they entail risks that the landlord must be willing to take. Take note of possible negative repercussions that having a rental home in the neighborhood would have, and how they can affect the property’s successes.
- Goals: What is the specific purpose of the rental property? Is it to cater to young professionals making their way into the working world? Is it suited for families looking for an alternative home option? Will it be available for long-term leasing, or short-term renting? Determining the landlord’s goals will help confirm if he or she is prepared to set his or her property for lease.
Showing the Ropes
As stated earlier, turning a property into a rental one requires knowledge of the basics of real estate leasing in Las Vegas. It requires one to know the governing rules and provisions that cover rentals, as well as the necessary documents for it. One cannot just go and set his or her home up for rent without knowing his legal requirements; the move would just leave him or her open to prosecution.
The Revised State Statutes are a good first reference for the wary landlord. The statutes cover most if not all of the important aspects of property rentals, including roles, definition of terms, duties and responsibilities, landlord and tenant rights, and important papers to file and complete. Of interest to prospective landlords would be Title 10, Chapter 18 and Title 3, Chapter 40 of the Revised Statutes; these provisions give a general overview of what to expect for rental properties.
Even with a risk assessment that shows a lower chance of failure for the rental property, the prospective landlord must still be wary of setbacks that can show up when operations begin. Common mid-operation problems like forged documents and unruly tenants should be dealt with immediately to avoid long-term issues along the way. Trespassers and illegal tenants also need prompt response from the landlord to avoid legal issues.
Local authorities have been looking for methods to help landlords deal with these issues, specifically with the problem of squatter tenants and forged leasing documents. A bill is currently in the works that aims to make it more difficult for people to occupy rental properties illegally, while also streamlining the leasing application process. Other measures like increased security around unoccupied rental homes and legal assistance for landlords are also in the pipe.
Renting out one’s home in an active real estate market may yield many rewards if the prospective landlord is willing to take the risks involved. Learning from rental experts is the first step to gaining success as a landlord in this busy market.