Succeeding In the Rental Business: How to Become a Good Landlord

 Stephanie Clarke
  Jun 15, 2016

Being a landlord is a lucrative position to be in. On the other hand, many have found out the hard way that it is not a job that just anybody can pull off, at least not without the proper preparation. With the increasing popularity of the sharing economy, now almost anyone can be a landlord, what with the apps that allow individuals to rent out their homes to renters for varied periods of time like AirBnB. To get the most out of being a landlord, for whatever period of time, here are some important considerations.

Landlord

Being a landlord is a business


Most people move from being simple homeowners to being landlords, but only in theory. It is a business, and needs to be treated as one. Many think of it as a passive income stream, a hand off investment that does not require much input. While this is partly true, being a landlord requires certain skills and time. The property invested in has to make business sense. Investors are advised not to take a personal approach, investing only in property they would live in. look at everything from the get go in a business perspective. This should be taken to mean the property should be appealing to the types of tenants one is looking for. Also, take into consideration such aspects as the mortgage payments, insurance, income and earnings.

Familiarity


One of the oldest running jokes in real estate investment is that the three most important elements of investing are location, location and location. This could not be any truer for this scenario. While many people’s first instinct is to look as far as possible for the lowest priced properties, this is not necessarily the right way. Check the property renter’s history report and find out whether the area is one that is as attractive as the house. It could only be low priced because it is in a neighborhood that many would not want to live in, because of insecurity or poor schools, for example. Investing in property out of state is a huge gamble. For the start at least, got for areas that are familiar.

Involvement


Many landlords begin small, starting with a single home that they can manage on their own. If this is the chosen path, then be ready to get down and dirty. Maintaining a rental property on one’s own requires a certain skillset. One must be good with tools and be ready and willing to fix the small things like plumbing and electricity without calling in the experts. More importantly, it requires someone bold enough to be able to deal with tenants when the rents are due.

Professional help


Even though going it alone is handy, a landlord must understand when it is time to call in the big guns. The landlord cannot be expected to handle or understand some things without professional help. For instance, they might need the help of a lawyer in designing a lease agreement. Consider turning to a property management firm which will handle everything involved in the process.

Succeeding In the Rental Business: How to Become a Good Landlord

Stephanie Clarke

Stephanie Clarke is a real estate expert and editor. She runs a company that helps renters find the perfect property or apartments. She also assists and advices tenants on the importance of and how to check their rental history reports.

Popular posts

Visual Content Marketing: Maximize Interaction of Your Digital Efforts
Aug 07, 2018
Your Quick Guide on How to Handle 5 Medical Emergencies
Aug 07, 2018
Diseases and How to Manage Them

Diseases and How to Manage Them

Unfortunately, more than half of Americans suffer from a chronic illness or disease. Here are a few of the most common and how to deal with them on a daily basis: H...

Aug 07, 2018
What You Need to Look for With Your Locksmith
Aug 06, 2018
Other posts by Stephanie Clarke
The Simple Things That Make Good Events Great
Jun 10, 2016
  • Add Comment
    weSRCH App on Apple