Are You Ready to Become a Landlord?
Investing in rental property is a great way to build home equity and increase your monthly income. Of course, being a landlord involves more than knowing how to determine a good rental property. In addition to having the necessary funds and time available to keep your property safe, you must have the appropriate temperament to keep your good tenants happy and to graciously deal with difficult tenants.
Before you go shopping for a rental property, you need to make sure you have the right income available. You need to be able to cover the mortgage and taxes on your current home, as well as on the rental property, as the building will be empty from time to time. You should also have money set aside for repairs that may come up while it is occupied and for any renovations and improvements you will need to bring the building up to code. Safe tenants are happy tenants, after all.
Once you have checked your budget, it is time to start shopping for a rental property. Working with local real estate agents is the best way to ensure that you are seeing every property on the market. Finding a good real estate agent is almost as time-consuming as finding the right rental property, but if you put in the effort, it is definitely worth it.
Once you have found a real estate agent, you are ready to begin house-hunting. Be sure to consider what type of tenants you would like to attract when considering the location of your new rental property. If you want quiet families, you should stay away from homes near college campuses. Likewise, if you prefer young students, try to look for homes near public transportation and other amenities.
From finding the right location to choosing a real estate agent, investing in rental property is a long process with lots of compromise. But once you find your new building and start changing tenants’ lives with accessible housing, you will find that becoming a landlord is a rewarding choice.