Acting as a landlord can be a tough job, but it can also come with great profits when you do it right. If you are up for the challenge and willing to put in the work, following are a few best tips for becoming a successful landlord.
Treat This as a Business.
Being a homeowner and acting as a landlord are two very different things, and you need to make every effort to separate these ways of thinking. There can be a lot of emotions involved when you are purchasing a home where you plan to live, and you want to find a house that incorporates specific elements and details that suit your lifestyle. Finding a house that you plan to rent is purely a business decision. You need to find a house that is in good shape, in an area that will be appealing to renters, and that is priced well so you can make a profit.
Make a plan, stay involved throughout the process, and remember that the goal in this endeavor is to make money.
Stick to an Area that You Know.
While it’s not entirely necessary to purchase a rental property in the same town where you live or somewhere nearby, this firsthand experience of being in the area can be extremely helpful. Realistically, there is only so much you can learn from reading a real estate listing. Even walking through a property doesn’t always give you the full picture.
Is this a neighborhood that is known to be welcoming? Is there a history of vandalism in the area? Is this a family-friendly neighborhood? Does there tend to be a lot of traffic in the area? Are the homes nice, or have you heard that many residents have had issues? Is this a place where people truly like to be?
By purchasing a rental property in an area that you know, there will be less unknowns and you will be equipped with more insight.
Go Slow, and Start Small.
You may have grand plans to one day have a whole slew of rental properties, but this is not the way to begin your journey as a landlord. Start with an affordable rental property – an option that is both safe and smart. As you learn more about the process and make money, you can then begin to set your sights on additional rental properties.