What To Think About Before Becoming A Landlord
One way to make a living or earn an extra income is to become a landlord. Real estate is a great business to get into if it’s your passion and you know what you’re doing.
You may have tossed around the idea of becoming a landlord but aren’t quite sure if it’s the right role for you or not. In this case, review what to think about before becoming a landlord and what to consider as you try to make your way into the business and industry. The more prepared you are mentally the better chance you have of succeeding.
Your Motivation
Consider your motivation before becoming a landlord. The reason being is it’s a commitment you need to take seriously and can’t just quickly get out of when you don’t feel like doing it anymore. Set realistic expectations for how much time and effort you’ll need to put into getting the right education and credentials and what the job will require of you long-term. You’ll need to be able to stay motivated to continue going strong when obstacles arise or the market takes a hit.
Your DIY Capabilities
You’ll also need a plan for how you’ll handle property problems and repairs that pop up. You may want help in this area if you are not that skilled at home DIY projects or simply don’t have the time to address them. Take a moment to review What is Facilities Management and all that’s involved in caring for a property properly and legally so that you know what to expect. You can’t just wing it and hope for the best. You need to be able to maintain the property well and respond to questions and issues in a timely manner. Know what you’re responsible for and will need to take care of so you have the help handy and money available.
Ways to Find Tenants
Think about how you’ll find quality tenants to rent out your properties. Before you become a landlord it’s wise to set up a tenant screening process. It’s an important step in the process of filling your properties and you’ll want to make sure you have reliable people living in them. It’s in your best interest to take the time to check out references and run background checks before having a tenant sign a lease and move in. While it may be tempting to rent to friends or family, it isn’t always a good idea and you should consider treading lightly.
Your Schedule
Being a landlord is a big time commitment and will take up a lot of your schedule. Think about how much time you have available for and to give to the role before diving in. It’s not only about renting the places out and securing reliable tenants but it’s also about properly maintaining them. There’s not only a time commitment involved but also a financial responsibility on you, so make sure to run the numbers prior to taking on this new role. Keep in mind that being a landlord is a business and not just a hobby.
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