7 Steps Your Residential Realtor Won’t Tell You To Take When You Buy Your First Duplex
If you’re a first-time duplex buyer who just closed on your first property in Minneapolis, St Paul or the surrounding areas, it’s important to know you still have more to do and learn.
Here are 7 quick steps to make sure your real estate investing career gets off to a great start:
- Make sure the utilities the landlord is responsible for are in your name.
- Notify the tenants that you own the building, how to contact you and where and how to pay rent.
- Check to see if the city the property is located in requires you and/or the property to have a rental license. If so, begin the process of obtaining one.
- Find and attend any landlord training classes. The city of Minneapolis offers a discount on rental license fees if you attend take their Rental Property Owner’s Workshop. The Minnesota Multi Housing Association (MMHA) also offers a course called The Fundamentals of Rental Property Management in Minnesota. This class offers important information about screening, fair housing practices and evictions.
- Open a separate bank account for your property. Your rental property should have it’s own checking and savings accounts. Not only will this make logging your expenses and income easier at tax time, it will show you truly are running your rental property like a business.
- Call your insurance agent and get an umbrella policy. While many recommend filing a quit claim deed to put the title of your property into an LLC for legal protection, this may also trigger a due-on-sale clause with your lender – forcing you to pay the property off. You may want to visit with an attorney about the best practice for you and your business, but in the meantime, protect yourself and your other assets with additional insurance.
- Finally, if you get stuck, feel free to give me a call. If I don’t know the answer, odds are I know someone who does!