Ever wonder if an investment property might bring you a little closer to achieving the small fortune you’ve always dreamed of? Well, be sure to consider the good, the bad, and the ugly before deciding this is the moneymaker you want to pursue. As a landlord, dealing with tenants can feel like a full-time job.
Read on to find out what things you should consider before taking the plunge!
Time and Finances
Becoming a landlord is no small undertaking. Be sure that you are physically and financially able to take on the commitment becoming a landlord requires. Not only will it be a huge investment up front, but it will continue to be an investment throughout your tenure as landlord and owner. You will need to decide if you will personally deal with tenants or if you will lay that responsibility onto a property management company to make it simpler.
Location, location, location…
Yes, we hear this all the time, however, when purchasing an investment property you need to have it on the top of your list. Not only will this influence how much income you’ll make, but it will also determine the tenant quality.
Check Out Local Real Estate Laws
Make sure you know the lay of the land. Before you purchase a property, investigate the rules of the complex’s Homeowners Association (HOA) or governing council. Some of these ruling bodies do not allow units to be utilized solely as rentals. Or, sometimes there are special fees or taxes attached to properties being rented out.
Create a Maintenance Plan of Action
Be sure to explicitly name whom the tenant needs to inform with each specific problem in the rental. By doing so, you will mitigate the tenant calling you every time the sink or toilet needs to be fixed. To avoid long-term problems, create a timeline of when you plan to replace certain major appliances and address normal wear and tear in the rental to avoid any huge issues arising.
Collect Your Money Efficiently
In our age of technology, there are tons of apps that can get you your money painlessly. The Cash App allows tenants to deposit their rent money directly to your bank account. LeaseRunner performs a variety of landlord tasks and reminds tenants when to send their payments. Whatever functions you need help remembering as a landlord, there is bound to be an app to keep you on track.