Looking to become a landlord in Kansas City, Missouri? Trends in the real estate market indicate that renting out your property is a promising investment move.
Kansas City has been on the radar of many investors over the years. Recent statistics have revealed that active listings have almost been halved, indicating an increase in purchases. This increase in demand for housing has resulted in an appreciation in price. More households are now willing to rent than purchase property.
As a prospective landlord, such information should be music to your ears. An increase in demand means competition for available housing stock. Provided that the economy remains stable, you are bound to enjoy a constant, stream of revenue.
Being a landlord in Missouri, however, comes with several legal responsibilities and obligations. One needs a comprehensive understanding of county and state landlord-tenant laws. Failure to comply with said laws can lead to penalties and disputes with tenants.
The professional team at Young Management has substantial experience in dealing with property issues. The article below can help you rent out your home while protecting your assets.
Tips on Renting Out Your Kansas City Property
Screening of Tenants
The tenant is the most important element in your new life as a landlord. However, the selection of a tenant is also critical. You don’t want to rent to someone who makes late rent payments, disturbs the neighbors, or will potentially damage your rental space.
Screening potential tenants is something every Kansas City landlord should do. Every applicant must pass a rigorous screening process.
Check their credit history and references from previous landlords. This will give you an idea of exactly what kind of tenants they’ll be. From there you’ll be able to decide whether or not you feel comfortable renting to them.
To secure a potential tenant, landlords or real estate agents must first advertise the rental unit. Once you’ve generated interest in your rental, the application, interviewing and screening process can begin.
One consideration that should underpin how you conduct the advertising and interviewing is the Fair Housing laws. If you don’t comply with these laws and regulations it can lead to discrimination complaints and potential legal issues.
The Fair Housing Act of 1968 puts forth that you cannot discriminate against potential tenants based on their race, religion, national origin, sex, familial status, or disabilities. The language and manner of speech that you use in advertisements and during the application and interview process should comply with the provisions stated in the Fair Housing Act.
As a landlord, you should also go to HUD’s website and check Missouri’s laws on discrimination and other regulations. Make sure you stay up-to-date on any policy changes that relate to property ownership and landlord-tenant laws.
The Lease Agreement and Missouri State Rules
A lease agreement is a contract between a landlord and a tenant. It is recommended that this agreement be written and that both parties sign said document. The lease agreement will contain detail of the obligations and responsibilities of all parties involved. This can include clauses on rent payments, late fees, the security deposit, and maintenance duties.
The lease agreement is a legally binding document and therefore must keep to Missouri State Law. The state has put out several laws relating to property and rent provisions such as eviction, deposit limits, and payments. As the landlord, the lease agreement should not contain any clauses that go against state laws.
Possible Termination of Tenancy and Eviction
In the perfect world, every tenant will respect the renal space, pay rent on time and maintain the property as required. But this is not always the case. Even with rigorous screening, there is always the possibility of dealing with a difficult tenant.
Should it come to it, there is a specific procedure that must be followed when it comes to the termination of tenancy and evicting a tenant. These legal provisions dictate what amounts to a breach in the agreement, the type of termination notice to issue, and how it is issued.
Missouri law states that the landlord should give the tenant 10 days’ notice to move out of the rental unit. After the 10 days, if the tenant has not vacated the space, the landlord can file the necessary paperwork and seek a court order to commence the eviction process.
Always ensure that, as the landlord, you are following the states eviction laws. Best practice would be to consult a licensed legal professional.
Consult a Property Management Company
The dynamics of managing a rental property can leave you feeling overwhelmed. Handling tenants is a full-time occupation that requires on-site attention. There is also the issue of keeping up with state and county taxes, maintenance and repairs requests, and staying informed on changes to landlord-tenant laws.
To take the burden off your shoulder, consider hiring the professional services of Young Management. We have considerable experience in residential management. Our knowledge in property law and the Kansas City market will ensure your space is well-maintained and your tenants have an enjoyable experience with renting your property.
Young Management offers comprehensive property management solutions that cover all elements of your property. Our expert team will advertise your vacant property, screen tenant, collect rent, handle your financial reporting needs and, if needed, will take care eviction of the tenant.
Landlords in Kansas City can reap the benefits of renting out their space. With a growing population with purchasing power, what more can a landlord ask for more?
A well-maintained space and compliance with State laws is the secret to renting out your property. To enjoy all the benefits of owning a rental property without all the stress, hire a professional property manager.
Seek information from the qualified team at Young Management. With more than 40 years of experience, we are a reputable real estate company that has offered professional services to hundreds of clients. Contact us today and put our impressive track record to the test!