Becoming a landlord isn’t all about easy rental incomes and a steady stream of great tenants. You have a number of challenges to face. Here’s what you have to look forward to if you want to become one:
Put Up the Capital
This can be substantial, depending on where the properties are. High-traffic areas usually go for a whole lot more. If you want excellent returns, make sure you have enough funds to buy a property with a good rental income potential. You also need to factor in remodeling costs to comply with safety regulations in local landlord and tenant laws.
You can find prospective tenants through a number of ways. Post on your social media pages, upload a tour of the home on Youtube, or go old-school with an ad.
Finding Good Tenants
The worst mistake you can make is to let the wrong tenant in, so invest in the time it takes to properly screen and filter applications. It might take you longer, but it’ll pay off in the long run, especially if you get excellent tenants who won’t give you a moment’s worry.
Regardless of your efforts, one or two might slip past your guard. Late payments, damaged property, and a ton of lease violations are just a few of the things you’ll lose sleep over.
Maintain the Property
This can set you back a lot, says Investopedia. A new roof or plumbing system is a big-ticket item. However, if done right, you likely won’t have to spend on a new one any time soon.
You could easily deal with all of these by hiring a property management company to help you out. They won’t be able to manage everything, but they can take on a chunk of your management tasks so that you’ll have less problems to deal with.