Some are finding opportunity in the foreclosure crisis -- homes go vacant and prices fall, which can make for an investment opportunity.
But the rental property game isn't for everyone, and first-time landlords can find themselves in trouble without knowing their rights, the rights of tenants or how to deal with illegal activity.
A proposed ordinance in St. Paul, up for final adoption today, aims to educate rookie landlords by requiring them to take a class in order to rent out a building. The training focuses on rights and responsibilities, recognizing criminal activity, understanding city and police procedures and finding resources.
Other metro-area cities, including St. Louis Park and Plymouth, have some form of crime-free training requirement.
"If you're going to spend $50,000 or $100,000 on a building, I think you could take a day to go through some training to protect your investment," said Council Member Lee Helgen, who sponsored the proposal.
St. Paul had 2,200 vacant buildings, the majority of them residential, late last year. In Helgen's Fifth Ward, there are more than 400 vacant residential buildings. He said there's been a steady rise in people buying those buildings and trying their hand as landlords, and he expects a bigger increase in the next two years.
He says his office as well as police have been dealing with tenant-landlord problems that could be solved with some education before the lease is signed.
It's true that in some communities the economy has led to more single-family homes being converted to rentals, said Lisa Peilen, director of municipal affairs for the Minnesota Multi-Housing Association.
