Whenever you decide to rent property, you have to make a few important decisions. The first is whether you plan on managing the property yourself or if you want to hire a Sammamish property manager to do the work for you. The second is whether you are operating as a commercial business or as a personal investor. As the latter, you will not require any sort of licensing and can file your taxes as ‘supplemental income’, but you might need other licensing if you have a lot of investments.
When Do I Need a Business License?
Not every renter requires a business license, especially not if they own just one or two units, however, some do. Washington law states that as a personal investment, you can rent out, collect money, and do repairs on personal property. If the rental becomes your business, you must obtain a business license and pay tax accordingly. A business license is applicable to persons who work and rent inside of Sammamish, and to those who live outside of Sammamish but rent inside of it. In either case, you can file your application with the City Hall.
Do I Need a Real Estate License?
A real estate license is important for many people, but also unimportant for others. If you hire a Sammamish property manager to collect fees, manage maintenance, and show homes to prospective renters than they do not need a real estate license. On the other hand if you hire a property manager to advertise and show apartments and homes, to collect and write leases and rents, and to manage the property, then they do need a real estate license. Because most individual investors are not interested in obtaining their own license, usually it is best to simply hire a local property manager when the time comes to get a license.
Other Laws for Property Managers
One of the most important requirements for anyone who is either renting or managing property in Sammamish is that there are many safety and quality of living regulations surrounding local rentals. If you are managing the property on your own then it is up to you to check and keep up with these regulations, if you are planning on hiring a Sammamish property manager, it is their job to do it for you. In either case, basic regulations surround quality of air, security including strong locks and doors, and area safety for environmental and physical standards. In most cases, your property must also hold up to an inspection from the local fire marshal before going up for rent.
There are many considerations for anyone who is planning on renting or leasing property in Sammamish, but more so for anyone who is not hiring a property manager to do so. One of the biggest benefits of hiring a manager for your property is hiring someone who is already familiar with local laws and regulations so that they can ensure everything is up to part with inspections and quality regulations before putting the home on the rental market.
Want to know more about what a Sammamish property manager can do for you? Contact SJA Property Management for a free consultation today.