Becoming a landlord is a great way to earn a living and become your own boss. On average, landlords make $73,000 per year and can even earn up to over $100K per year.
It’s not all a walk in the park, though—you have to be prepared and disciplined to get the job done.
Keep reading to learn the seven things you need to know before becoming a landlord.
1. Live Near Your Rental
In an ideal situation, you want to live as close as possible to your rental. That way, if there are any problems or issues you need to address, you’re around and available to get them done.
This is also ideal depending on where your rental is, so you can drive by and make sure it’s being taken care of. For example, if you’re a landlord for college students, it’s not a bad idea to drive by it every month to ensure it’s not being destroyed.
2. Fully Understand the Laws
Never go into something without fully understanding the laws that you need to follow. Be sure to look up local and state laws that you’re going to be bound by so you don’t end up breaking the law without realizing it.
Look up the laws regarding:
- Security deposits
- The access you’re allowed
- Anti-discrimination
- Habitability
These are just a couple of laws you’re going to want to look up before becoming a landlord, but there are a lot more than that. You should have proper insurance as well for your property. You can check PB Insurance UK for this purpose.
3. Have an Iron-Clad Contract
Piggy-backing off the last point, always have a contract or lease agreement that outlines everything in case something goes wrong. If you’re serious about becoming a landlord, you should hire an attorney.
Check out these reasons to hire one if you still don’t think it’s important to have legal help when becoming a landlord.
At the end of the day, if you do need to go to court with a tenant, you’ll want to feel confident that your contract protects you.
4. Being a Landlord Isn’t a 9-5
Sometimes you get a call at 9 PM that the hot water heater broke, and you have to go over there and get it fixed. Othertimes, disaster is going to hit over a weekend, and it’s up to you to address these issues.
If you’re looking to be a more hands-off landlord, you could consider hiring a maintenance person to help out, but at the end of the day, it’s your business and your property.
5. Remember: These People Live There
Yes, you own this property, but your tenant is living there all the time. This is their family, their furniture, and their home. One of the best landlord tips we can give you is don’t always try to be right.
Remember, there are a lot of emotions when it comes to where you live, so try to see every situation from their perspective. Try to think about how you’d feel if what was happening to them was happening to you and your family.
Of course, you have a business to run, but you also have to be a good person. You need people to rent from you to make money, and they need somewhere to live. You don’t have to be their friend, but you do have to be considerate.
6. Always Have Insurance
Not only is insurance usually required when you own a property, but having insurance will end up saving you a ton in the long run.
If you’re not sure where to start and what type of insurance you need, reach out to your current home insurance company and see what they have to say. Also, don’t be afraid to ask around and get the best quote with the most coverage.
7. You’re Going to Wear Multiple Hats
As a landlord, you’re going to be doing multiple jobs. You’ll be in charge of sales to bring in new tenants. You’re in charge of collecting rent and keeping track of when people are late.
If something breaks and you don’t have a maintenance person, that’s going to be on you to either fix it or hire the right person to get it fixed.
Understand that there’s going to be a lot of work when it comes to being a landlord, but it can also be really rewarding.
How to Be a Good Landlord
Now that you know the seven things to consider, it’s time to figure out how to become a good landlord.
One of the easiest ways to make your tenants feel welcomed and have a good experience is to write them a letter and tell them about some of the great local places. This will go far for people who are new to the area and make them feel more comfortable by renting with you.
Something that’s definitely nice but not required is stocking the bathroom. The first thing most people do in a new place is to go to the bathroom, especially if they’re moving from far away and have a long drive. By stocking the bathroom with some soap and toilet paper, you’re showing them you care, and believe us—they’re going to notice.
Finally, the least you could do is fully go over the lease agreement with the tenant to ensure you’re both on the same page. This way, they can ask questions, and you can ensure they understand what’s expected.
Fulfill Your Dreams by Becoming a Landlord Today
Once you understand all seven things you need to consider before becoming a landlord, it’s time to take a leap of faith and try it today!
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