You will find plenty of pros to being a property manager when you produce a long run financial commitment to a rental home. You can be your very own boss, you can certainly set your individual working hours, and the cash flow you end up getting can be extremely good. But there can be risks if you don't comprehend precisely what you are carrying out. There are three things in particular you must be very cognizant of: the landlord tenant laws that control what both you and the tenant can and can't do, the quality of the house(s) you will be leasing, and of course your renters.

LANDLORD LAWS

The details of the landlord tenant laws by which you must comply will vary from state to state, but the general purpose of them is pretty much the same nationwide. These rules and regulations seek to protect the best interests of the property manager as well as the renter in a fair and equitable manner. You as a landlord are fully responsible for learning and complying with the landlord laws in your state. So if you do not know your state's laws, do some research now so you do not inadvertently get yourself in hot water. Laws like these are needed because the mindset of some landlords is that since they own the physical building, they can do whatever they want. Although this could be accurate in certain situations, there are other situations where the renter possesses more rights that the landlord. These situations always have to do with the most basic necessities that people need in order to live comfortably and healthy.

CONDITION OF THE PROPERTY

Landlords must maintain their rental units in good, livable condition, and the laws in every state and municipality are going to vary with regards to what is livable and what is not. To be a respected and successful landlord, you really should be well versed in the zoning and building standards of the city that your housing units are in. This will cut down greatly on the number of misconceptions and resulting problems relative to the living conditions of the tenants. This is clearly a very common reason for problems amongst renters and property owners.

QUALITY OF RENTERS

You want to make sure to always select good people to move in to your rental units. Doing an extensive credit and criminal background check on prospective renters is the primary means by which most landlords select quality tenants. Additionally, it is helpful to always maintain a personable attitude when it comes to dealing with applicants; a professional yet friendly attitude will help you build a rapport with the potential tenant which will help you determine whether the prospect is worthy of renting one of your apartments.

One thing to keep in mind is that, although very important, the results of your tenant screening activities are certainly not all-encompassing. Just because people have bad credit or a criminal history doesn't necessarily mean that they will be bad tenants. The specific circumstances that have conspired to degrade their credit worthiness, or that landed them in trouble with the law, are things you will definitely want to know. Personal references can be a good way to garner such information, and can also shed some light on whether or not the tenant is trustworthy, hardworking and honest. In the final analysis, deciding who to rent to should always be based on professional reasons that are considered to be within current laws.

SUMMARY

By understanding and obeying your state's landlord tenant laws as well as your local municipality's zoning and city code regulations, and following best-in-class tenant screening practices, you can dramatically reduce your business risk. This will make your investing activities run smoother, and will put more money in your pocket.