You might have heard that there is money in real estate, and that would be correct. Becoming a landlord is much like starting and running any other business, though. You need to know how to get started properly in order to have the best chances of success.
Renovate Your Property Into Apartments
You can make a lot more money as a landlord by renting out multiple units rather than just a single building. When getting started, it may therefore be a good idea to plan a remodel where you divide your existing property up into several apartment units. This can be an expensive investment upfront but might be the right choice if you want to get more out of the property than the income you will get from renting only one space.
Understand The Law Governing Tenants And Landlords
As a landlord, you will need to adhere to landlord tenant law. These are the laws that dictate the responsibilities and rights of both landlords and tenants, and they vary in every state. New landlords should familiarize themselves with these laws. It is probably a good idea to consult with an attorney to draft your lease agreement and answer any questions when you’re starting out. You will likely also have to file your status as a landlord with the city in which the property is located.
Use Landlord-Specific Software
The right software can make your life so much easier as a landlord. Software specifically for landlords allows you to process payments from tenants, maintain tenant profiles, process maintenance requests, perform background and credit checks, and has other helpful features. Some landlord software can synchronize rental listings across the most popular sites and analyze online tenant applications for you.
Hire A Property Manager
Hiring a property manager can be the right decision if you do not feel experienced enough to handle all aspects of being a landlord. A property manager can screen tenants for you, collect payments, respond to issues tenants may be having and enforce your rules, among other duties. They can also help you manage your property’s finances and offer invaluable professional advice. It will be up to you to determine if the cost of hiring one is justified compared to the cost of not having one.
Owning a rental property creates passive income, which can serve as supplemental income or even your sole source of income if you expand your investment portfolio. You will have to put in the work to ensure the endeavor is a success. With the right choices and preparations, you can make good supplemental income by renting out your property.
By Meghan Belnap
who is a freelance writer who enjoys spending time with her family and residing in Oklahoma.