Education and news for smart DIY landlords!
If you’re reading this blog post right now, I have a question for you… Are you ready to enter the rental property business this 2019?
Becoming a landlord is one of the best decisions you make if you want to increase your cash flow. It can also be a tough, tough journey if you’re not prepared. To know if you’re truly ready, try answering this list of essential questions first.
Whether you’ll be renting out your previous home or are still looking for a rental property to buy, consider the needs and preferences of your ideal tenants. Also, factor in the improvements that must be made.
Read: How to Choose a Great Rental Property: A Landlord’s Guide
Some landlords prefer to charge a higher rent to cover utilities like electricity, water, gas, and television, instead of handing the responsibility to the tenants. If you do this, your tenants will be happy knowing that they only need to worry about paying the rent. This also prevents tension among tenants who split the bill (because some may refuse to pay their share).
Finding a great renter requires you to have a predetermined set of qualifications. You must pre-qualify all prospective tenants if you want your business to run as smoothly as possible. Run a credit report. Check their ability to pay rent. Know their rental history.
Read: Essential Questions to Ask in a Rental Application
As a landlord, one of your main responsibilities is to keep your property filled. That said, you need to proactively find tenants. Back in the day, landlords relied on yard signs and newspaper ads. Now, you can leverage various online marketing strategies.
Read: 9 Creative Rental Marketing Tips for Landlords
Are you able and willing to handle the day to day operations of a landlord? Screening tenants, handling complaints, conducting repairs, maintaining records -- these are just some of your responsibilities. If you can’t handle these but still want to become a landlord, consider bringing in a property manager.
A reserve fund or emergency refund is that extra cash saved up for rainy days. It’s important to always be prepared for emergencies. Whether it’s the heater that’s not working or a leaky roof, a reserve fund helps you stay in business. The size of your reserve fund should depend on the number and age of your rental property/properties.
These are, obviously, just some of the many questions to ask that will help you know if you’re ready. Every aspiring landlord has unique situations and will, therefore, need to factor in things not mentioned in this post. But we hope that our list helped!
If you’re ready, make Landlord Prep your go-to resource for landlording education. Here, we offer a complete DIY landlording course to get you on the right track. Join our academy today. If you want, you can check out Flavia’s real estate investing webinar first.