Owning rental property can be lucrative. If you play your cards right, you can generate a significant amount of passive income that supports the lifestyle that you want. But there are no guarantees here, and the rental property market can be highly competitive. That’s why you have to navigate the process with care. If you don’t, then you could wind up tied to a property that’s more costly than you expected and that becomes more of a burden than you had anticipated.
While there are a lot of places you can turn for help when you’re looking for rental property to purchase, one person you may want to consider seeking out is a real estate attorney. That said, let’s look at how an attorney can help you with the purchase of rental real estate so that you can decide whether securing their services is right for you.
How a real estate attorney can help you with the purchase of rental property
An attorney might not be your first thought when you’re considering purchasing a rental property. However, there are several ways that an attorney can help guide you through the process. These include:
- Negotiating the terms of your purchase agreement: You don’t have to be locked into the seller’s initial offer. Instead, you might have room to negotiate a fairer price that leaves you better positioned to render the property profitable. And there may be other terms to negotiate, too, such as repairs to the property. An experienced attorney will know how to develop a negotiation strategy that puts your interests first and that increase your chances of securing the outcome that you want.
- Reviewing rental agreements: While purchasing a rental property in and of itself can be difficult, you shouldn’t finalize the process until you know what potential leases are going to look like. In some instances, properties are purchased with tenants already on the premises. In these circumstances, you have to know tenants’ rights and your obligations under any existing lease agreements. You should also think carefully about what terms you want in place as well as the rental rate you want to apply to the property so that you can better budget your income and expenses tied to the property.
- Ensuring that due diligence is conducted appropriately: Before purchasing a property, you need to know everything about it, from needed repairs to the cost of upkeep and zoning regulations. An attorney will know what you need to assess and walk you through the process so that you know exactly what you’re getting into before you finalize a purchase.
- Giving you peace of mind: There are a lot of uncertainties that can come up when you’re purchasing rental property, which can leave you on edge thinking that you’ve made a bad deal that’s just waiting to come back to bite you. By working with an attorney, though, you can rest assured that you’ve protected yourself and your business interests as much as possible, and that you’ve gotten as fair of a deal as possible.
Be sure to get the most out of your rental real estate purchase
A seemingly simple mistake when purchasing rental property can cost you big time. Therefore, it’s imperative that you navigate the process with knowledge and an awareness of the costly errors that could be contrary to your best interests. If you don’t know where to start or if you think that you could benefit from assistance along the way, then now may be the time to seek out a real estate attorney who can help you navigate the process with confidence and competence.