Owning and renting real estate is a good method of earning extra income, but to be a property owner, you really have to know how to protect yourself. In this article we list five things to help make your landlord experience a good one.

1. Always Get a Written Agreement Signed by You and the Tenant

Most real estate experts agree that oral contracts are, at best, useless. Even more than useless, in fact, they can turn out to be very harmful. People can forget parts of a conversation, or hear one thing when you meant to communicate another. If relationships sour and you and your tenant end up going to court, an agreement that is not written and signed can end up being difficult, if not impossible, to enforce in a legal proceeding.

2. Make Your Lease Comprehensive

You can find quite a few "boilerplate" leases available free or at a nominal cost online or in stationery stores. These leases may provide a good place starting point, but you really should personalize the lease to your unique situation and your way of doing business. You should cover subjects such as who may occupy the property (ideally only individuals named on the lease); whether or not pets are OK, what kinds, how many, and possibly a weight limitation; what alterations the tenant is or is not allowed to make to the property; whether or not the tenant can sublet; who is responsible for maintaining the property; and any other conditions.

3. Don't Skip Doing Background Checks on Your Potential Tenants

Do you plan to rent to a habitual criminal who is deeply in debt and has been thrown out of the last two or three apartments that accepted his application? Probably not. A simple background and credit check can save you a lot of grief later.

4. Operate Well Within the Scope of the Discrimination Laws

The law at both state and Federal levels protects potential renters from being discriminated against based on such factors as gender, religion, sexual orientation, marital status, age, source of income, ethnicity, and more. Know the anti-discrimination laws and be careful not to violate them.

5. Take Care of Problems Right Away

Don't ignore problems, especially situations like tenants falling behind in their rent or violating a provision of the lease. A nice way of thinking of it is that some people need a little help in learning good habits. If the tenants are violating some provision of the lease, notify them about their responsibilities immediately and stay on them until the problem is corrected. Your final recourse, which is trouble you'll not want to be pushed into, is an eviction notice.

Renting out property is not a get rich quick scheme. It takes patience and a good dose of luck. Following these rules will help you avoid some of the more troublesome traps that many landlords can and make renting a happier and more pleasant experience not only for you but for your tenants as well.

This article was made available courtesy of Automated Homefinder, your Lafayette Colorado real estate experts.