Most owners of multi-family properties offering Apartments for Rent in Worcester County lose sight of the fact that they are involved in an income producing enterprise and are business owners. Income generating streams are realized by tenants that live in your building, while growth equity(property appreciation) takes place over time. It is a great opportunity, but surprisingly, most home owners know very little about their business. Choosing the right candidate to live in your building seems quite obvious, but many owners either rush or procrastinate and lose money in the process.
A good application and screening process is a good starting point, but forgetting about Federal and State Fair Housing Laws can cause you legal trouble. Rental agreements need to be concise and legal. Things like snow-removal, lawn care, and common area lighting paid by tenants are all illegal even for a discounted rent. I always advise property owners to screen fairly but concisely. When closing on a multifamily make sure that proper documentation is forwarded to you, signed rental agreements, last month or security deposits, rent roll and names and numbers of tenants are included in that documentation. I was recently called to offer consulting advice to a large property owner that failed to get properly signed rental agreements, rent rolls, or contact information of a property he just purchased. A thorough and knowledgeable broker can ensure that you are adequately protected but the onerous is on the property owner to make sure that he knows his business.
