If you’re looking for a new way to make money but aren’t sure what to do, you might want to consider becoming a landlord. Being a landlord means you’re your own boss and the work can be extremely rewarding. Individual investors own about 22.7 million units in the United States, so it’s clearly a very popular career choice. Here are three steps to becoming a landlord.
Step One: Do Your Research
Your first step when pursuing any new career should be to research everything you need to know. For a landlord, it’s important to analyze your market and clientele. Consider what types of rental properties are available in your area. Where are they? Who is renting? What is the average price of rent? This is a critical step because you cannot offer a unit for twice as much as others in the area and expect to find tenants.
You might even want to pursue an online business degree. Having the education and knowledge to run your own business will help you become successful and your degree can give you the tools you need to be your own boss. You’ll also want to find local Fresno property management. With the right property management team, your business will run smoothly and efficiently. Not only will you benefit from property management, but your tenants will love the ability to access services online. Make sure you have everything you need before you begin searching for renters.
Step Two: Find Your Property
Once you know how to proceed, you want to make sure you have the perfect rental property. This might already be taken care of if you are planning to rent out your home or another property you already own, but for some new landlords this step might take some time. If you’re planning to purchase a property, you’ll need to meet with your bank and find out how much you can borrow. This is a crucial first step as you can’t purchase anything without the proper finances.
As you look at potential properties, consider how much your rent will make you. You should already have a good idea about what you can charge since you’ve done your research, so remember this number as you hunt for the perfect property. The rent will also go towards expenses, so it’s important that you consider how much you can afford to spend on your property while ensuring you’ll still be able to pay for property management, any utilities you’ve chosen to cover, and any maintenance that might need to occur. Don’t dig yourself into a hole by choosing an investment property that’s more than you will ever be able to afford.
Step Three: Market Well and Find Your Tenants
You’re ready to market your rental property and begin accepting tenants. In order to attract the best renters, make sure your property is in excellent condition. Keep the area landscaped and clean and keep each unit looking clean and well-maintained. Post your listing online and target the demographic you are looking to rent to. If your property is in a college town, post your listing around the campus.
Once potential tenants start to submit applications, you’ll want to make sure you’re only selecting the best possible renters. Do a background check on every applicant and look at credit history. You want to make sure you’re choosing renters who will always be able to pay their rent on time and in full. You can check out the applicants’ rental history to get an idea of how consistent they have been in the past. Looking closely at each potential renter’s application will help save you time and money in the long run.
Becoming a landlord can be an amazing way to be your own boss and make a great living. If you follow these three easy steps, you’ll be on your way to success in no time.