Top 3 Ways to Fail as a Landlord
Now everyone always talks about the good things that happen and all the good things with rentals, but the reality is there are some bad things that happen when you own a property.
It’s very easy to fail as an investor, and I think a lot of people need to know what those things are, because if and when it happens to people, and they weren’t educated on the subject, it’s kind of their own fault for not taking the time to learn. You have to remember that when you own a property, you own a business. You are governed and watched here in Texas by the Texas Property Code, Fair Housing, Discrimination, IRS, all the things that can get an owner in serious trouble.
The challenge is most owners do not realize that they are being watched by all these agencies that are protecting the tenants. You want to make sure that you know what you’re doing when you own real estate.
Don’t treat it like a hobby
Treat it like a business. If you don’t know how to run a business, then maybe you should hire someone to run that business for you, or hand it over and leverage your time and your ability with using a management service.
Have a business plan
Have policies, have procedures, have structures in place; and make sure that you run it like a business.
Don’t take things personal
Don’t get emotional, just understand that you own a business, and you’re operating it as such.