Rental Property Investor · Pitman, NJ · Member since 2019 · 24 posts · 16 votes
I'm getting very close getting my first rental property (house hacking a multi) and I wanted to see what was the one thing on your first deal/first time landlord you wish you knew, would tell a first timer, or even better, a tough lesson you had to learn? I'm in South Jersey so if its Jersey specific even better! Thanks guys!
Contractor · Pottstown, PA · Member since 2018 · 216 posts · 160 votes
7y
The rehab is more difficult, costly and time-consuming than you expected. Have more cash reserves than you think you'll need, or at least a job that pays reasonably well and a willingness to DIY stuff.
Learn to screen tenants properly. Bad ones will sink your ship in a hurry.
Contractor · Pottstown, PA · Member since 2018 · 216 posts · 160 votes
7y
The rehab is more difficult, costly and time-consuming than you expected. Have more cash reserves than you think you'll need, or at least a job that pays reasonably well and a willingness to DIY stuff.
Learn to screen tenants properly. Bad ones will sink your ship in a hurry.
Rental Property Investor · South Jersey, NJ · Member since 2016 · 124 posts · 58 votes
7y
@Brian Wolf Congrats on your first rental! I agree with everything @Clark Kirkpatrick stated above. Create systems for everything, from renovations to tenant screenings. Develop your criteria for screening tenants and stick to it! You might get anxious about a vacancy but trust me, its better than dealing with a trouble tenant.
When analyzing deals, take into consideration management expenses. You may not always want to manage your property yourself.
Also! Have a iron clad lease agreement. Its very important....and one last thing.. if a tenant is late on his rent, after the grace period begin the evictions process AS SOON AS POSSIBLE!
If you have any other questions i'm always available..
Durham, NC · Member since 2019 · 16 posts · 11 votes
7y
Cannot stress enough the importance of doing thorough due diligence. It's always worth the extra few hundred dollars for another inspection or getting a second opinion.
Rental Property Investor · Cleveland, MN · Member since 2017 · 518 posts · 354 votes
7y
-Don't make friends with the tenants. This is a business. Keep it friendly but professional.
-Stick to the rules in your lease. No excuses. If they are late they pay the late fee. You are not their parents or their bank. If they can't afford their rent they need to get help from the people in their lives, not their landlord. If they ask, just say, "the lease says _____" and we have to follow the lease.