Tips for rookie landlords

Published 4:40 pm Friday, December 23, 2011

FORT LAUDERDALE, Fla. — The epic housing collapse has turned thousands of homeowners into reluctant landlords.

They’re learning the hard way about how rentals work. They’d much prefer to sell, but they can’t get the price they want or need. In many cases, the homeowners are “underwater,” owing far more than the properties are worth.

Reluctant landlords at least have a red-hot rental market going for them. Some have taken jobs elsewhere and collect rent from afar. But even those who have stayed in town face the typical headaches: dealing with problem tenants, paying for repairs and losing money each month.

Here are some tips for newbies:

Make sure the tenant knows this is an arm’s-length business transaction. Don’t try to be friends.

Consider hiring a property manager if you’ve moved out of the area.

Don’t get into a habit of accepting late rent payments.

Keep good records because certain landlord expenses may be tax deductible.