Trying to become a new landlord

7 Replies

I am planning to be a landlord within the next month, Is there anything that I should know before starting?

And tips on being successful?

@Armani Emon   Congrats!  Lots to recommend and it would take a huge post.  Read up here on BP about it, also there are good books out there that can be purchased for under $20.

It can be a tough business especially if you managing the property yourself, screening tenants, etc.  I would recommend doing this initially so you can understand the business, collecting rents, reviewing repair expenses, leases, tenant-landlord law for your area (definitely know this!).

Have lots of cash reserves, I generally shoot for $10k per property.  Although rare, suddenly you may find with no rental income from a non-paying tenant, then additional eviction expense, cleaning the place back up, a roof leak and maybe a refrigerator goes.  Doesn't happen often but when it does, $5-10K can go quickly.

Good luck!

- Tom

Originally posted by @Tom S. :

@Armani Emon  Congrats!  Lots to recommend and it would take a huge post.  Read up here on BP about it, also there are good books out there that can be purchased for under $20.

It can be a tough business especially if you managing the property yourself, screening tenants, etc.  I would recommend doing this initially so you can understand the business, collecting rents, reviewing repair expenses, leases, tenant-landlord law for your area (definitely know this!).

Have lots of cash reserves, I generally shoot for $10k per property.  Although rare, suddenly you may find with no rental income from a non-paying tenant, then additional eviction expense, cleaning the place back up, a roof leak and maybe a refrigerator goes.  Doesn't happen often but when it does, $5-10K can go quickly.

Good luck!

- Tom

Thank you.

How do you feel about 6 people living in one home?

Its a spacious 3 Bedroom, and so space wouldn't be a problem. It has 2 BR so bathroom space won't be a problem. But I am wondering if the overall idea sounds ridiculous?

 

Originally posted by @Tom S. :

It can be a tough business especially if you managing the property yourself, screening tenants, etc.  I would recommend doing this initially so you can understand the business, collecting rents, reviewing repair expenses, leases, tenant-landlord law for your area (definitely know this!)

Glad you mentioned that. I wondered if initially one should get a PM or do it all first-hand to understand how properties are ran under the hood. I believed that to be the best method, but this confirmed it. 

Get to know your landlord/tenant laws for your state. Print them up or bookmark them on your computer. This cannot be stressed enough.