How to Make Money as a Landlord
Have you ever dreamed of sitting at home and watching checks arrive in your mailbox? Though you might think that becoming a landlord is an easy way to make money, most find that it takes more work than they ever imagined.
You may deal with expensive repairs to the homes you own, tenants who pay late or stop paying their rent and other problems that can leave you spending more money than you make.
While you can make money as a landlord, you need to consider a number of things.
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Choosing the Right Properties
Long before you rent a single home, you need to make sure that you choose the right properties. Think about the type of tenants you want to rent to and the amount you want to make.
While you may find cheaper homes located in bad neighborhoods, those homes will usually limit the amount of rent that you can charge. Though you may need to pay more for homes in better neighborhoods, you can get more in terms of rent. You’ll also want to think about whether single family or multiple family homes are better for you.
Collecting Rent Every Month
When you rent a home, the tenant signs a rental agreement and agrees to pay rent by a specified date each month. You should include in that document a stipulation regarding any late fee that you charge.
If you find that you have a hard time maintaining your buildings and/or that you don’t want to deal with collecting rent, consider hiring a property management company.
The company takes care of rental checks, handles routine maintenance and can even handle the eviction process if needed.
Being a Good Landlord
Being a good landlord helps you develop a strong reputation, which may lead to more people wanting to rent from you. Good landlords take the time to make repairs quickly and form good relationships with their tenants.
If you take days to respond to calls about plumbing issues and weeks to repair leaky roofs, you won’t keep tenants for very long.
But if you get contract, you can get those problems resolved very quickly, and not worry about losing tenants.
When you decide to become a landlord, work with a real estate professional to find properties in good neighborhoods that will appeal to the type of tenants you want living in your rental homes.