Factors to Consider Before Buying a Rental Property
An Orange County real estate litigation lawyer can provide advice to property owners when they experience legal issues that land them in court. Owning a property- and especially a rental property – can be a great investment, but problems can arise that necessitate a clear understanding of the law. Brown & Charbonneau, LLP can help you when you are considering the purchase of a property, when you are acquiring a property, or when problems arise with properties you own.
It is always best to prevent problems from occurring before they happen, which means you need to know exactly what you are getting into before you buy a property. Some of the key factors to consider when you are thinking about the purchase of a rental property include the following.
A property is an investment that can have high ongoing operating expenses. After purchasing the property, you will need to pay your mortgage and you will also need to pay for taxes and insurance. You’ll need to pay for repairs and upgrades, and you will incur costs in advertising for tenants, conducting pre-rental verifications of credit worthiness, and rent collection. You need to make certain that the property is likely to produce enough income to cover your overhead costs and ideally provide you with a profit.
The Likelihood of Profitability
It is important to consider the revenue that the rental property will bring in and to make sure that the property is not going to cost you more than you earn from renting it out. You can make money in two ways from rental property: the appreciation of the property when it rises in value and the ongoing rental income that you receive from tenants each month. However, you should carefully evaluate the terms of your financing, the operating costs and the projected income from the property to determine if the investment is a sound one. Brown & Charbonneau, LLP can provide assistance reviewing financing agreements and purchase contracts to help you to make an assessment on the likelihood of the long-term profitability of the rental property.
The Potential for Landlord/Tenant Disputes to Arise
As a landlord, you are required to comply with California’s myriad rules and regulations aiming to protect tenants. Landlord tenant laws in California govern many different aspects of your relationship with tenants at your rental property. For example, there are rules protecting tenant privacy and there are strict processes that must be followed if you need to evict a tenant for any problems that arise.
When a conflict arises between a landlord and tenant, it is imperative that the landlord consult with a real estate litigation lawyer to determine the best way to proceed. A landlord cannot just evict a tenant, for example, without going through the official legal process – even if the tenant is not paying rent or is clearly violating the terms of the lease. You don’t want to open yourself up to legal claims against you for violations of landlord tenant laws so you should have a knowledgeable advocate on your side to guide you through legal proceedings that must take place when a conflict arises.
Getting Help from an Orange County Real Estate Litigation Lawyer
These are just a few of many key factors that you need to careful consider when you are thinking about purchasing a rental property. Depending upon the type of property you are thinking about buying and your goals for the property, there may also be a wide variety of other key issues that you need to address before you make a real estate purchase. Brown & Charbonneau, LLP can advise you on the factors to consider before buying and can help you to protect your rights and interests as a property owner.
If something does go wrong with your commercial real estate transaction or while you are operating as a landlord, you need to know what your rights are. Act quickly to contact Brown & Charbonneau, LLP to get a legal advocate on your side right away so you can avoid or minimize any possible loss and protect your interests in your property. To find out more about how an Orange County real estate litigation lawyer can help, give us a call at (866)237-8129 or contact us online today.