Retirement & Financial Planning Report

Before and after buying rental property, you should take precautions:

* Before you buy, have the home inspected. Factor the inspection results into the amount you bid. If you can’t get referrals to a reliable home inspector, the American Society of Home Inspectors (www.ashi.org.) can direct you to members in your local area.

* After you buy a property, tenant selection is critical. Too many people are in a hurry to rent their property but you should take the time to check out applicants.

Evaluate applicants’ credit scores, follow up on their references to former landlords, and call their employers. If you skip those steps, you run the risks of non-payment of rent and property damage. Even if you hire a property manager, who’ll do the basic screening, you should review tenant applications and reject anyone who makes you feel uncomfortable.