Lately, we have been thinking a lot about becoming a landlord. It sounds like an interesting way to make some passive income, and a way to bring in money when we eventually want to retire. With that though, I know and understand that it is not just an easy way to make money.
There are many things to consider if you want to become a landlord, and I will be discussing those below:
Unless you have a property manager, you will still have to do a few things. Even if you have a property manager, it’s not like you will be completely hands off.
Some of the things you may have to do include:
- Finding renters. You’ll have to advertise the rental, do background checks, and more.
- Maintenance and repairs. If something breaks or needs to be repaired, that is usually up to you.
Don’t forget about the costs.
Before you become a landlord, it is usually wise to have some money saved. This is because there are several expenses that you will need to pay for as a landlord.
Some of these possible expenses of being a landlord include:
- The mortgage for the rental. Hopefully the rent check from your renter covers the mortgage, but you never know. You may have vacancies as well.
- Insurance. You will need insurance for the rental like with?CIA Insurance. You never know what may happen so this is a NEED when becoming a landlord.
- Maintenance and repairs. You will have to pay for plumbing, electrical problems, and so on most likely.
- Property manager. If you decide not to take care of the property yourself, you can always find a property manager to deal with the day-to-day ?and to even find a renter. The amount that they are paid varies so it is always best to just ask.
You might not have the greatest renters occasionally.
One thing with becoming a landlord is to realize that you may not always have the perfect renter. Some may ruin the rental, others may never pay. This is why you always need to make sure that you know what you are doing when you are trying to find the renter for your rental home.
What else do you think a person should consider if they want to become a landlord?