If you’re looking for a low stress, high-income job, there are few options that hold the same allure that being a landlord does. With far fewer day-to-day tasks that need your attention, lucrative profits, and a diverse, exciting job description, the position of being a landlord is an attractive one indeed.
However, the task of actually becoming a landlord is a daunting one that might be sufficiently challenging to deter the less determined. Nevertheless, those with the grit and resources to take advantage of this opportunity are undoubtedly going to pursue this goal relentlessly. The question is, what’s the best way to become a landlord?
That, folks, is the reason we’re bringing this article to you today. There is a best way to go about the task of becoming a landlord, although your chances of doing everything right the first time are slim to none. Nevertheless, with this article, we’ll be giving you some helpful tips to help you on your journey to becoming a landlord. Let’s begin!
Step 1: Be sure you’re sure
The first step on the path to becoming a landlord is quite simple, actually, and it is this: asking yourself whether or not becoming a landlord is right for you. While there are certainly a plethora of attractive benefits that accompany the position of a landlord, there are some substantial downsides that you should consider first.
In addition to these downsides, you have to ask yourself whether or not you’d be better suited to a landlord-adjacent job instead. Other opportunities, such as managing an Airbnb vacation rental, might suit your personality and strength of commitment, in addition to potentially proving more lucrative. The choice is yours; just be sure that being a landlord is right for you.
Step 2: Do your research
Once you know for sure that you want to be a landlord, you’ve got to roll your sleeves up and start studying. Before you go any further, you need to make sure that you’re well prepared for the responsibilities you are taking on. While it isn’t the most labor-intensive business venture you could undertake, it will require you to be thoroughly adept in your new field of expertise.
You can start small with online, open-source resources written and published to help aspiring landlords in your position. These resources will give you a solid and well-rounded basis to work with and help you learn the fundamentals of being a landlord. Once you’ve exhausted the extent of the information online, you can move on to online seminars and other resources available to those in your situation.
Step 3: Find rental properties
Now that you’re well-acquainted with the basics of being a landlord, you’ll want to explore the real estate market in the area to see what’s available. You can go about it alone, or you can find a real estate agent in your area to help with your search. While the former might net you more experience, you’re probably better off with the help of someone more experienced.
Either way, you’ll need to scope out the market and find properties that meet your budget and your expectations from a rental property. Look for properties that are in good condition, are well designed, and easy to maintain. Additionally, if you are planning on working in a metropolitan area, parking and a central location are also very attractive characteristics. You might even want to consider relocating to one of the best cities to be a landlord in!
Step 4: Purchase and prepare your property
At this point, you should have settled on one or more properties that meet all your requirements and will be suitable as rentals. What you need to do now is purchase a property or properties and prepare them for occupancy. Get in contact with the real estate agent representing the seller and negotiate the pricing. If all goes to plan, you should soon be the proud owner of several fine rental properties.
After you’ve purchased your rental property or properties, you need to prepare them for occupancy by tenants. Depending on the state of the property you bought, you may have to redecorate, refurnish, or even remodel. This may require minimal or even extensive investment, but this investment will begin to pay off once you reach step 6.
Step 5: Insure and improve your property
As you reach this step, you’ll probably be chomping at the bit to get tenants into your rental property or properties. That’s an important step, but there’s one thing left that needs to be addressed before the greenbacks start rolling in: insurance. In order to make sure that any incidental damages to your property are covered, you’ll want to take out a landlord’s insurance policy beforehand.
Additionally, you may want to judiciously make improvements to the property. Your reasons for doing this might vary, but you should at the very least ensure that your property is as safe and secure as possible. This will help prevent any legal claims against you and keep your tenants healthy and happy.
Step: 6: Find tenants
Now comes the step you’ve been waiting for. This is when all of your investments will start to pay off, and you’ll see some cold, hard cash in your account. In spite of this, you’ll still need to do some legwork to get the best tenants possible for your new property or properties. If you accept the first tenant that shows up, you’re sure to be in for a difficult time.
To weed out any less-than-ideal applicants, you’ll need to thoroughly screen your applicants in order to adequately ensure that your experience as a landlord is as optimal as possible. This process may take some time, but once you’ve found your ideal tenant, you’ll be glad you put in the extra effort.
Well, that’s it. This isn’t a comprehensive guide by any means, but it should give you a good idea of the general process of becoming a landlord. There will be some bumps along the way, without a doubt, but with time, you’ll find that being a landlord is rewarding work from a physical, mental, and monetary point of view. We wish you the best of luck on your journey towards becoming a landlord!
Mariia serves as editor-in-chief and writer for the Rentberry and Landlord Tips blogs. She covers topics such as landlord-tenant laws, tips and advice for renters, investment opportunities in various cities, and more. She holds a master’s degree in strategic management, and you can find her articles in such publications as Yahoo! Finance, Forbes, Benzinga, and RealEstateAgent.