:A bad tenant can lead to thousands of dollars of losses via unpaid rents, legal fees and property damages.

Converting your single-family home into a rental property involves several considerations to protect yourself and ensure smooth operations: Establish an LLC:Liability Protection: Holding the rental property in an LLC can protect your personal assets from potential lawsuits related to the property.Tax Benefits: An LLC can offer tax advantages, such as pass-through taxation, where rental income is taxed at your individual income tax rate.Insurance:Landlord Insurance: Ensures coverage for property damage, liability claims, and loss of rental income.Umbrella Policy: Provides additional liability coverage beyond your landlord insurance, offering extra protection.Deductions:Mortgage Interest and Property Taxes: Continue to deduct these expenses.Depreciation: Depreciate the cost of the property over 27.5 years, excluding the land value.Maintenance and Repairs: Deduct costs related to maintaining the property.Property Management Fees: Deduct fees paid to the property manager.Filing Taxes:Schedule E: Report rental income and expenses on Schedule E of your tax return.Separate Accounts: Maintain separate bank accounts for rental income and expenses to simplify bookkeeping.Lease Agreement:Solid Lease Terms: Ensure your lease agreement is thorough, covering rent amount, due date, late fees, maintenance responsibilities, and eviction terms.Legal Review: Have the lease agreement reviewed by a real estate attorney to ensure compliance with local laws.Tenant Screening:Background Checks: Perform credit, criminal, and eviction history checks on prospective tenants.References: Contact previous landlords and employers for references.Property Management:Regular Inspections: Schedule regular property inspections to ensure it's being maintained properly.Maintenance Fund: Set aside a reserve fund for unexpected repairs and maintenance.Moving Out of State:Communication: Maintain open communication with your property manager.

Hi BiggerPockets Team,I have a tenant which hasn't paid rent for sometime and has damaged the property and local legalaid attorneys are helping the tenant by throwing the kitchen sink at me by false accusations :) Do you have recommendation for Eviction Lawyers in the area who I can talk to get advise and representation?

Include a timeline for when you expect a response.Request for Repairs/Completion: Ask the contractor to either complete the work and reinstall the alarm system or provide compensation for the damages and incomplete work. 

I doubt one of those posters has apologized to the lifelong damage they did to the financial lives of anyone that followed their advice.

DaveFrom a credit damage perspective, once they have missed a payment (31 days late), it shows up on their record and after the 3rd missed payment their credit is shot.

At least from my experience if your purchasing a typically philly row (900-1200 sqft) for 100k with a resale around 250k a rough full gut budget is most likely going to fall somewhere around 80-110k excluding any structural issues, fire damage, etc.

It won't matter but if it would ease your nerves (and you are in one of the states we do closings in) I'm happy to pull your title and let you know if you are clear.  

The risks are this: the more people that live there, the greater the risks of damage to the property.

The age of the home and its two decade vacancy has led to more damage to the structure than we originally thought.