Do you own a property? Are you trying to figure out whether you should sell it for a profit or hold on to it and rent it out? By holding on to your property you can take advantage of tax breaks but before you make your decision to rent out your property you need to consider the downsides. Here are some things you need to consider before you decide to rent out a property.

With rental properties you will be responsible for all the normal costs of owning your property including mortgage payments, taxes and insurance. On top of the normal payments you will also be required to pay for repairs that are not the fault of the tenant. Even if you aren't obligated to fix something, it's better to appease the tenant; angry tenants lead to delayed payments and a poor renter relationship.

It's important to find a tenant that will be on time with payments and can afford the rent. Make sure that an application is completed which should detail the prospective tenant's rental history, work information and other necessary information. Perform a credit check and rental history check. Verify their employment and contact previous rental agencies and landlords to see if they were on time with payments.

Once you've chosen a renter, have a contract that is clear and fair. It should include such things as late fees, deposits, and other responsibilities. It should also detail what you are responsible for, i.e. maintenance and repairs.

Once you have your property rented, keep accurate and detailed records of payments. If there is a late payment contact the tenant and ask for a reason so you can document it. A late payment may be justified but if payments are regularly late then there is a cause for concern. Enforce your late payment fees so it will encourage the renter to pay their rent on time.

You should also make occasional visits to neighbors to ask if there are any problems. Your tenant could be irritating your neighbors by leaving garbage lying around, being noisy, etc. This is not only bad for neighborhood relations but it can bring down the value of your property. Future renters can also be discouraged by the neighbors so it can be more difficult to rent out your property in the future. This is true if your or anywhere in the world.

When a tenant goes against something in the contract then try to approach them about it. If a warning doesn't fix the problem then you may need to pursue legal action. Taking a renter to court can be costly and time consuming. Out of court arbitration is generally better for everyone involved.

As you can see, having rental property is not as easy as it appears. Not only will you have to take care of the usual payments and repairs but you may find yourself with an unpleasant renter.