This contributed post is for informational purposes only. Please consult a business, financial and legal professional before making any decisions. We may earn money or products from the affiliate links in this post.
Making money as a landlord might seem like a dream come true, but unfortunately, it’s not a given. You can’t guarantee that you’re going to make a profit as a landlord, and that’s why you need to make sure you take the right steps to making this venture profitable. Below, we’ll discuss the steps that you must take if you’re going to make money as a landlord.
Invest In The Right Property
Investing in the right property doesn’t just mean buying a nice house or apartment somewhere. It means carefully researching the neighborhood and making sure you’re going to get interest from your ideal tenant. When you select the property, you need to consider the type of property, who it will attract, your budget, and other factors that will influence how your venture goes.
If you’re completely new to this, it’s advisable to speak to a real estate agent who has been in the area for some time to advise you.
Who Do You Want To Rent To?
As we’ve mentioned, the type of property that you buy will influence who actually wants to let out the property. Who do you want to deal with most of the time? Do you want to deal with families, young professionals, or another type of person? You’ll need to think carefully about what kind of property these people want so you can be sure to attract them.
Get More Help
You might not want to be too involved in this venture. Of course you want to make money, but that doesn’t mean you have to do all of the hard work – like getting woken up at 3 am because of an emergency repair. It would be your responsibility to go over and fix that. Instead, a property management company can take over for you for a fee. Usually, you can be as involved as you like. If you already have a job and other kinds of responsibilities, finding some kind of help is a great idea. You might also want to get help from someone like John Inglesino who provides legal services to private individuals, businesses and municipalities.
Know What Is Expected Of You As A Landlord
If you’re going to be a landlord, you should know what’s expected of you (like ensuring your tenants have total privacy and you don’t just turn up unannounced). Sometimes, going above and beyond can mean your tenants stay with you for longer. Something as simple as sending a thank you card/Christmas card can really make a difference.
Invest In More Property
Unfortunately, it’s unlikely you’re going to make a ton of money when you rent out your first property. There are many things you’ll have to pay for as a landlord, such as replacement appliances and other repairs, your property management services, and so on. Investing in more property should be your end goal. You want a portfolio of different properties that you can manage and make money from over time. It will probably take a lot of time to find the right properties and tenants before you’re actually making a living, so be prepared to play the long game.