10.6 million Americans earn an income from rental properties. Becoming a landlord is a lucrative investment to make, especially if you’re looking for new ways to make passive income.
To succeed, it’s wise to learn a few landlord tips first. This way, you can avoid making mistakes and skip right to the successful part.
Keep reading below to get started.
Treat Your Rental Property Like a Business
Whether or not becoming a landlord is your primary source of income, you need to treat it like a business if you want to be successful.
This means complying with all local, state, and federal laws. There are many regulations that come with real estate investments, and it’s essential that you learn them all and follow them before becoming a landlord.
You also need to protect yourself and your business from any potential disasters or liability claims. Purchase landlord insurance to ensure you won’t have to pay for things that may break or tenants that may sue you.
Running a business means making sure your building is up to code, and everything is fully functioning.
Test all carbon monoxide and smoke detectors, clear all vents from any debris build-up, and check all internal and external pipes for combustion.
It’s also wise to have contractors, locksmiths, and electricians on call in case your tenants have any issues. You should always have a plan for how you’ll fix any problems that could occur.
Hire a Property Manager
If you want to be a good landlord, then you’ll maintain a habitable space for your tenants.
If you don’t live near your rental properties or don’t have the time to put in, then you may consider hiring a property manager.
This is often a worthwhile investment, as they can manage all the day-to-day tasks such as collecting rents, dealing with tenant problems, and marketing your property. They can often maintain more than one rental property at a time.
Make sure you ask for references before hiring your property manager, so you know you can trust them.
Set the Right Rent Price
One of the most important tips for new landlords is setting the right rent price.
To do so, look at your local market and compare your property to similar properties next to you.
If you have more amenities, you may be able to charge a bit more. If you’re not getting any applications, you can reduce your price slightly.
Add pet rent if you are going to allow pets on your property.
You never want to charge too much or too low, as this can drive away tenants or make you miss out on money. Compare your monthly expenses to your rent price, and ensure you will be able to make a profit in the end while also making it fair.
Follow These Landlord Tips
If you’re a first-time landlord, you’ll need to follow some landlord tips to ensure your success. Use this guide above, and you’ll soon see that passive income flowing in.
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