Finding adequate housing is something many people struggle with daily. The plights of those searching for the perfect rental are common knowledge, but what about those of the landlord?
Becoming a landlord can be a lucrative venture for those interested in earning extra money. Like with any business venture, however, there are a few things you should consider before taking that first big step.
Read on below to learn three important factors to consider before you decide being a landlord is right for you.
Have Other Sources of Income
Renting out your property may seem easy, but there are a lot of hurdles involved. While navigating these hurdles, you may find yourself losing more money than you’re making. This is why being a landlord shouldn’t be your main source of income.
One of the biggest tips for new landlords is to have income to fall back on. While you’re in the process of upgrading your property to rental standards, you may spend more than you make. This could go on for several years.
As a landlord, you’re responsible for keeping your rental in good shape. More often than not, in your first few years, you’ll spend the rent you take in keeping your tenants happy. This may not be ideal at the time but will pay out better for you in the long run.
Be Selective When Screening Tenants
Many people ask the question, what do landlords do? The answer is quite extensive.
Beyond caring for the property itself, a landlord is responsible for choosing tenants, screening them, collecting rent, and having a proper rental agreement on hand. Being selective makes these processes much easier.
When choosing the right tenant, a thorough background check is always advised. This will help you in determining whether issues may arise. If a tenant has a criminal background or a history of not paying rent, they aren’t the ones for you.
To protect yourself legally with your tenants, speaking with a lawyer about your rental agreement is a smart move. Having everything in writing before renters move in protects all parties when issues arise.
Be Open to Assistance
Being a landlord is stressful. Luckily, there are ways to get assistance if you feel like you’re in over your head.
Property management teams are great for the busy landlord who needs a little help. These companies can help with everything from tenant screenings to scheduling to required maintenance for your property.
If a property management team seems like a good idea to you, it’s important to choose the one you feel comfortable with. Meeting with the team, discussing what you expect of the arrangement, and learning what they bring to the table will make the partnership more stable.
Are You Interested in Becoming a Landlord?
If becoming a landlord feels like the right move, now’s the time to make it. The need for rental properties and the money-making opportunities it presents could be a life-changing decision for you.
To learn more about what to expect in the real estate and business side of life as a landlord, check out our blog for more helpful tips.