So You Want to be a Landlord

Question 1: The property:

Is your property properly zoned for a rental?
Is your property a lawful two (or more) family home?
If it is a condominium unit, do the rules and regulations allow a tenancy and it is
limited for a term of the lease?
Is the property registered with the municipality (Landlord Registration Statement)
and in compliance with any applicable state regulation?
Did the landlord consult his Realtor to find the appropriate property?

Question 2: The Tenant:
Is your prospective tenant a good credit risk?
Is the landlord discriminating because of race, religion, marital status or sex?
Is the landlord discriminating against a tenant with children?
Did the landlord contact a Realtor to screen the prospective tenant?

Question 3: The Lease:
Does the lease recite the term, amount of rent, sublet clause, late fees, right
to reenter?
Does the tenant waive rights which the law does not allow?

Question 4: The Truth in Renting Statement
Did the landlord give the tenant the required Truth in Renting Statement which is
published by the Department of Community Affairs?

Question 5: Crime Insurance
Did the landlord notify the tenant within 30 days of moving in of the tenant’s
option to purchase insurance to protect from theft and damages?

Question 6: Security Deposit
Did the landlord obtain the proper amount of the security deposit which depends
on the number of units which the landlord owns?

Question 7: Tax Benefits and Anticipated Increase of the Value of Real Estate
Has the landlord consulted with a CPA to discuss the value of tax benefits
of owning an investment property?
Has the landlord consulted his Realtor to examine the value of the property and
prospect for the increase of value in the property?