Education and news for smart DIY landlords!
Do you want to be a landlord but don't know what to do? You’ve come to the right place.
Many people nowadays want to be landlords because it's a great way to generate monthly income and provide long-term security. However, becoming a landlord requires investing time, financial resources, and experience. If this is your first try, check out these 7 ways to turn your dream of becoming a landlord into reality this 2023.
Since it's your first time becoming a landlord, you need to understand rental business and management laws. Research whether your country requires landlords to register their property or not. Learn the laws that protect the rights of owners, property managers, and tenants. Finally, check for available landlord insurance to protect your property and other financial assets from accidents and sudden loss.
If you want your business to become successful and expand in the future, you also need to research the type of property you're going to buy. You can choose from a single-family home, a condominium unit, or a multi-unit building. This all depends on your budget, structural condition, and location.
Make sure that the property is close to your home, as you'll need to examine its condition from time to time. The property should also be located near major establishments and offers an easy commute to attract tenants.
Your expenses won’t end after purchasing the property for your rental business. You must also consider other aspects like rental income taxes, landlord insurance, maintenance, and repairs. So, prepare your finances and set aside some of your money to cover additional fees associated with your future business.
Naturally, you'll want to attract renters to profit from your business. And to do that, you need to make your property livable and in good condition. Renovate and repair if needed to ensure that tenants are safe when moving in. And, of course, clean your property to make it more appealing for potential renters.
After spending your money to purchase and renovate your property, it's time to calculate a reasonable rental price. If it's too low, then you won't have enough profit. Meanwhile, if the price is too high, you'll attract fewer tenants.
You may determine your price by checking out the price of similar rentals and comparing your expenses and potential profit. You can also increase the rent if your property is close to essential establishments like schools, malls, and hospitals.
When your property is move-in ready, the next step is to advertise and market it. Today, people are looking for properties using the internet, so make sure you create property listing online. Next, advertise your property by highlighting its features and policies. You can also make a virtual tour by taking high-quality videos of your property's interior and exterior.
Lastly, screen for a good and reliable tenant. Check their background and credit scores to know if they can pay you on time. Look for a tenant that will treat your property as their own.
Remember that it's your first time becoming a landlord. You may make some mistakes along the way, but that’s okay! Minimize making mistakes by researching and seeking advice from professionals.