Being a landlord is awesome, so long as you know what you’re walking into. And trust me—it’s way more than getting a check in the mailbox every month (although that is one of the main perks!).
If you’re thinking about adding “landlord” to your resume, go in with your eyes wide open with these three tips:
While the kind and friendly tenants are easy to work with, “kind and friendly” doesn't always pay the rent. Run thorough background checks on potential tenants by calling references, checking credit scores, and reviewing finances. Make this a non-negotiable no matter how friendly they appear.
Build up enough savings so you can comfortably cover your obligations for a month or two without tenants in place. Why? Because tenants won’t pay on time or you’ll have gaps as old tenants move out and new tenants move in.
Talk with a property management company and at least consider using their services to facilitate the lease and collect payments. Most charge a monthly fee of between 8% – 12% of the monthly rent collected. If the rent is $1,200 a month, that’s about $120 for someone else to handle it all. Totally. Worth. It.
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