Law-Forums.org

[adusa37]

I'm looking into buying a few rental properties in Florida. Is there anyway I can do it without having to do anything or be liable for law suites? I know I can hire a property management company but how much do they charge? Do I have to make repairs myself if I do hire one? I've saved up a lot of money to purchase my first home I figured with the prices of homes why not buy two with cash rent them out and have them pay for my personal house. Any suggestions am I getting myself in over my head?

[morcan]

As I am not an attorney, I cannot advise you on how to avoid legal liability. You should refer to legal counsel regarding potential liability and not rely on someone who "thinks there is a legal document" that waives all responsibility on your part.

However, to answer your other questions, most property management companies charge 10% of the monthly rent for their services. This includes: collecting rent, facilitating repairs, locating new tenants if there is a vacancy and handling the eviction process if necessary. Of course, you may be responsible for court costs for an eviction. The property management company does the paperwork, but you may still have to pay for the court costs yourself.

To minimize your repair hassles, I would advise buying a home warranty for each rental property. A home warranty is a service contract that covers the repair or replacement of many of the most frequently occurring breakdowns of home system components and appliances. If something breaks (and it's covered under the home warranty), you pay a "co-pay" of about $60 and the issue is repaired or replaced. Read the fine print on home warranties. There are various levels of coverage.

Be sure to contact a licensed Realtor in Florida to help you through the process of finding a rental property. Remember, the seller pays the Realtor's commission, not the buyer. So you may as well get the professional guidance and assistance since it doesn't cost you anything.

[dacy17]

Insurance. When ever you own property you take on liability. The way to minimize that liability is to have good insurance.

I don't have any direct knowledge, but from the little I've seen, I don't think rental property is a good investment. I think you have a lot of expenses, including dead beat tenants. I've heard stories of it taking almost a year to evict a tenant who won't pay rent.

[tate8]

ill rent one out and not ask you the manager to do anything at all but accept my rent....I think theres actually a legal document you can get from a rental agency that allow you as the landlord to decide what you are responsible for and what you are not...Im not sure what it is called but I know that my current landlord made me sign a huge long list of what he is not responsible for doing on his property....including plumbing, electrical problems and the occasional other problem....it is my responsibility as a tenant to fix such problems myself and I have no problem doing so....Im actually trying to find a property to buy there on one acre of land and I have found alot of properties on HUD.com. I wish you luck.

[gwynethpaltrow8]

ill rent one out and not ask you the manager to do anything at all but accept my rent....I think theres actually a legal document you can get from a rental agency that allow you as the landlord to decide what you are responsible for and what you are not...Im not sure what it is called but I know that my current landlord made me sign a huge long list of what he is not responsible for doing on his property....including plumbing, electrical problems and the occasional other problem....it is my responsibility as a tenant to fix such problems myself and I have no problem doing so....Im actually trying to find a property to buy there on one acre of land and I have found alot of properties on HUD.com. I wish you luck.

There is much more involved with owning a rental property than simply hiring a manager and collecting rent. There are many costs to consider, some may not be so obvious at first glance. First you need to determine if the property will have a positive cash flow. If you plan to hire a property manager that is a cost that needs to be counted. Check out the link below to see if you should even buy the place.

[otis]

honestly, if you are asking these questions, you would be over your head.

you can have a management company manage the property, collect rents and make repairs on your behalf. They usually charge 10%-15% of the total income each month. PLUS the cost of repairs.

As for lawsuits, have enough insurance.

[akule76]

Rates may vary, but hiring a property management company is probably the wisest course of action. At the very least, someone from a property management firm, such as TDI Properties, will be able to properly answer all of your questions. For more information on property management services, visit http://www.tdipropertiesinc.com.