Assess the market for townhome rental in Eden, Utah, and investigate what your return on your investment will be when you offer the units for rental. Check out the number of rental properties in the Eden, Utah area, and pay special attention to the number of vacancies of units the size of your townhomes. There may not be any available units the size of your units, or the market may be glutted with units that size.
Make contact with your usual agent early in your negotiation process to clarify whether you can obtain coverage through that agent or if another type of agent is needed. Try to obtain referrals and choose a new agent if needed. The important thing to avoid is having your purchase come together suddenly while your insurance arrangements are still incomplete. Your insurance may be affected by the type of financing that you use as well. Be sure to stay on top of insurance decisions and don’t leave this until the last minute to ensure that you have coverage in place, even if your initial coverage is just a binder until the actual policy can be issued.
Your tax expert can advise you on how to structure your payments and receivables. That expert can also instruct you on the best way to establish new management accounts for your business in the event that you do not already have accounts set up for that purpose. You will at least need an escrow-type account to hold security deposit payments unless your accountant or attorney holds that money for you.
To ensure that your legal interest is covered you should have a written lease even if you are renting to friends. Contracts pertaining to land, including leases, must be in writing to be enforced. You want your tenants to sign up to pay you the rent they owe them; absent a written lease, they have no real obligation to do so. It is much easier to establish your rights with respect to your property if everything is set out in writing. Even if you have to use a “boiler-plate” lease, you will be in far better shape legally if you use a written agreement. Just to be sure that your written agreement serves your interests, have your attorney or real estate look over your Eden, Utah real estate lease agreement before you sign anyone up as a tenant!
Learn more about the Eden Utah, Ogden Valley area.