Susan Ormont - RISK VERSUS REWARD: A SIMPLE GUIDE FOR INVESTING IN REAL ESTATE

program tends to involve a lot more paperwork, rules, guidelines, etc., and it’s a much different type of rental vs. somebody who’s paying you rent out of their pocket every month. • Will you accept someone who shows up late to a showing? A late-showing tenant is a red flag. Let’s imagine that you’re someone who’s on time everywhere you go, and you think punctuality is an important indicator of whether someone is a responsible person. You agree to meet with a tenant at 2:00 p.m., but they show up at 2:15; will you rent your house to a tenant who was 15 minutes late? If you decide not to rent to the tenant because of that issue, make sure you are within the guidelines of the FHA. • Will you accept someone who’s breaking a current lease or has been evicted? This is an area that some would-be landlords fail to consider in their minimum qualification standards. Consider whether a potential tenant is breaking a lease with their current landlord — what’s going to protect you if they decide to do the same thing to you at some point? • Your unit has lead paint. Will you accept children under the age of 6? This can be a major can of worms especially if you discover your potential tenant has children under 6, is pregnant or planning a family. You may not legally refuse a family with a child under 6 so you could potentially be required to "Delead" a unit which is costly and also involves all the common space in a multiple unit building. As this is a huge issue in Massachusetts with so many older homes, I refer you to the Lead Paint Disclosure documents, Massachusetts Property Transfer Lead Paint Notification form (MAR 800) or documents for the state

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