Do you want to become a landlord? Becoming a landlord is not an easy task, but it can be very rewarding. If you want to take your chances at success in this type of real estate investment and understand all there needs to know about becoming one with the job then read on!
1. Educate Yourself to be a Landlord
- It is important to know what it takes as a landlord. You have many responsibilities and tasks on your plate, but there’s no reason why you can’t learn them! It’s important to know the ins and outs of being a responsible landlord.
- Ask yourself these questions:
- Am I ready to be a landlord?
- Do I have what it takes to manage a rental property and all that comes with it?
- Is my knowledge enough to engage in this career path?
2. Prepare your Financing
- To avoid surprises, you should prepare your financing before being a landlord. This includes an estimate of what it will cost to maintain the property as well as any maintenance and repair issues that may arise with each year’s tenants- these expenses could surprise even experienced landlords! Learn about the different financing options and how it is going to affect your finances in all aspects.
3. Find and Analyze a Rental Property
- Search for a rental property in the location of your choice and analyze it to make sure it brings a good return on investment. Search for various tools online that will be easy for you to utilize time effectively.
4. Buy a Rental Property
- So you’ve found the perfect rental property, now, it’s time to make an offer and close the real estate deal. A novice landlord needs to be careful when they first start out because it is a big commitment. That’s why enlisting the help of an experienced real estate agent like me will make things easier for you! (Jennifer Davis | 971-400-6420 )
5. Learn the Rental Laws
- Who wants to deal with legal issues? No one! As a new landlord, it’s your responsibility as a new rental property owner to understand the local rental laws in your state and city. You need to look into laws regarding tenant and landlord rights and responsibilities surrounding rental property issues like:
- Rent control
- Tenant applications and screening
- Lease agreements
- Security deposits
- Maintenance and repairs (damage to rental property vs wear and tear)
Consult with a local legal expert if you need further guidance.
6. Market the Rental Property
- Market the Rental Property to potential renters. Share what’s special about it, list all of its features and amenities so interested individuals know exactly where they’ll be staying when visiting or looking for your place. You can market the rental property with a variety of advertising methods, such as placing an ad in several newspapers that cover your area and sending targeted emails to people who have shown interest before. You will want this done at least once every few months or so because it’s important for maintaining good relations between you and potential renters!
7. Choose Good Tenants
- A huge part of being a successful landlord has to do with finding good tenants. Being a landlord for the first time becomes that much easier if you manage to find the right tenants. To enjoy a consistently high occupancy rate and a steady rental income, choose tenants who will take care of your rental property as if it was their own, who will pay rent on time, and who, hopefully, will renew the lease when the time comes.
8. Write a Lease Agreement
- Although in some states a verbal agreement is legal, it’s best to have a back-up plan which is to write a lease agreement for tenants to avoid legal issues in the future. You can either consult with a real estate attorney or simply look up templates online.
9. Maintain the Rental Property
- Maintaining a rental property is not an easy task. You need to make sure it’s properly maintained and well-maintained at all times, from top down throughout every inch in order for this process to work effectively! Maintenance will also help to ensure your investment property’s value doesn’t suffer any major drops, barring real estate market fluctuations.
10. Decide if you need Professional Help
- Truth be told, becoming a landlord is not for everyone. If you’ve come this far but feel that you either need a little help or that you just want to sit back and earn passive income from your rental property, then it could be time to ask guidance from a real estate agent or hire a professional property manager.
Remember me if you’re planning to pursue this real estate career path and I’ll be willing to guide you every step of the way.
Hiring a realtor to help you sell your home is one of the smartest decisions you can make. With great honest reviews and knowledge, agents are equipped with the tools and resources you require to get your home sold fast – and for top dollar.
Thinking of sell your home? Reach out to Jennifer Davis today to get started.