You have probably heard of someone who claims to have made millions by becoming a landlord. Buying and renting properties as a sole source of income may not be an easy journey. However, if you are looking for a solid investment on the side, then you should definitely consider becoming a landlord. It will, of course, require a lot of work and effort on your end. Moreover, you need to bear in mind that the process is not risk-free. There will be plenty of research you must do before investing your money into a property and turning around as a rental property. If you follow these tips and make a calculated decision, then you are more likely to become wealthy by being a landlord.

FIND THE RIGHT PROPERTY 

This is perhaps the most important step towards making money out of being a landlord. Before investing your money into a property, you need to be sure it is rentable. Choose an area that is growing or is already well-established. Furthermore, it should be a safe neighborhood with access to public transportation and utilities. An extra step you can take is to meet the neighbors and make sure they are friendly and respectful people. Purchasing a property in a prime location will increase your chances of renting it out.

DON’T UNDERESTIMATE COSTS

So you’ve found the perfect home to buy and rent out, now what? You will need to plan your finances before actually closing the deal. Make sure you have enough to cover insurance, taxes if you have one. Don’t forget to leave enough money on the side for any repairs you will be making around the home. Plan the annual costs you will need to cover in case a tenant moves out as well as any unexpected repair and maintenance expenses.

ASK ABOUT RENTAL LAWS IN YOUR CITY 

Remember that rental laws differ from one place to the next. Ask about the specific laws in your city to stay on the right side of the law. Furthermore, find a trusted lawyer who will be able to write out a contract that guarantees and protects your rights as a landlord. Talk to your lawyer ahead of time to discuss what benefits you would like to add in the contract. For example, it is recommended to add a clause that allows you or your property manager to visit the property every six months or so to inspect it.

HIRE A PROPERTY MANAGER IF YOU LIVE FAR AWAY 

If you happen to live further away from your property, then hire a property manager to do certain tasks for you. They will be able to visit the property regularly as indicated in the contract. Moreover, this will guarantee that repairs are made as soon as possible since the property manager will inform you right away. Never postpone maintenance and repairs as the problem may become even more costly. Always take care of the property and keep it in perfect shape for the current and future tenants.

FINDING TENANTS

In order to find tenants, you can resort to placing online ads or hiring an agent to rent out your property. Although finding tenants is not exactly difficult, finding the right tenants is. You want someone who will be respectful of your property and follow the contract you have signed. It is also important to find a tenant who pays the rent on time. This is why you should run a credit check and a background check on the tenant before allowing them to rent the property. The process may take up some time and money, but it is definitely worth it. After all, you want someone who will be able to keep up with the rent.

REMEMBER IT WILL BE DIFFICULT AT TIMES

Don’t start the process thinking you will be making big money soon with little to no problems arising. Chances are, it’s going to be a bumpy ride, and that’s perfectly ok. There are even times where you may lose money due to costly repairs. That’s why it’s important to always plan ahead and get expert advice when needed. Becoming a landlord will take up a lot of your time and effort. However, if you do things right and remain professional, it will be a profitable investment.

November 22, 2017

Can you really become wealthy from being a landlord?

You have probably heard of someone who claims to have made millions by becoming a landlord. Buying and renting properties as a sole source of income may not be an easy journey. However, if you are looking for a solid investment on the side, then you should definitely consider becoming a landlord. It will, of course, require a lot of work and effort on your end. Moreover, you need to bear in mind that the process is not risk-free. There will be plenty of research you must do before investing your money into a property and turning around as a rental property. If you follow these tips and make a calculated decision, then you are more likely to become wealthy by being a landlord. FIND THE RIGHT PROPERTY  This is perhaps the most important step towards making money out of being a landlord. Before investing your money into a property, you […]
March 1, 2016

Small Details To Make Your Property More Desirable

Like anything in life, it’s often the little things that can make the difference that most people hardly pay attention to.
February 1, 2016

How To Buy a Real Estate Investment

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Financial advisory will tell you that there are five ways that you can earn a return on any investment. In no particular order, these are: Cash Flow or Rate of Return, Federal Tax Benefits, Leverage of OPM (Other People’s Money), Principal Paydown and Appreciation. One of the wonderful things about real estate is that you can get all five! Real estate is the only investment that I know of that potentially gives you all of these advantages. Think about it. What other investment product out there that gives you the flexibility and possibility of great returns like real estate does? Cash Flow – Cash flow is what is left over after you collect the rent and pay your mortgage, taxes, insurance and any repairs. It is your profit. Imagine a cash flow of N150,000 on a rental house. Now imagine owning 20 of them. Real estate investing allows you to quickly build up a nice […]
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5 Mistakes of First Time Buyers (And How to Avoid Them)

Buying your first home can be exciting and amazing, and scary. But knowing the common mistakes of first-time buyers will ensure you don’t make the same ones, and can help make the transition to “New Home Owner!” that much smoother. 1) Spending Too Much It’s important to be realistic about what you can afford. The final sale price isn’t the only cost to take into account when owning a home. Houses come with plenty of bills like heating and property taxes, future renovations and occasional unforeseen costs like burst pipes or city trees needing to be trimmed. What you can do about it: Take a close look at your finances. Be aware of your current fixed costs and always leave some breathing room. Ask the homeowners what they spend in a year on their bills so there aren’t any surprises. Canada Mortgage and Housing Corporation has plenty of useful online budget […]