With the current housing market, being a landlord may seem like an appealing option for homeowners who are unable to or unwilling to sell their home. However, before taking the leap into becoming someone’s landlord take a look at these guidelines to make sure being a landlord is what you really want and have time to do.
Know the Business Side
Becoming a landlord is not all about collecting rent on the first of every month. You need to make sure you are prepared for the problems your property may run into as well as the hassle of paperwork, contractors, taxes, insurance, etc. Even if you have a property management company deal with the day-to-day headaches, it doesn’t mean you’re released from all “business” type items. Be proactive and research ahead of time what logistics being a landlord demands and assess whether you have the kind of time this requires.
Know the Finances
There are certain costs associated with being a landlord. For example, your insurance and taxes may go up for the home. You’ll need to change the owner’s status from “occupant” to “investor.” In addition you will have maintenance costs such as paint, carpet, landscaping and other items to keep the tenant happy. Be proactive and do the research ahead of time to make sure you can afford to be a landlord.
Find the Right Tenant
The pressure to fill a vacancy may be intense, but imagine having to do it again in another six months! Take your time to run all necessary credit checks, background checks and criminal history. You don’t want to place someone in your rental that could be a liability and/or possibly not pay the rent for months at a time.
Taking these few principles into consideration prior to becoming a landlord will go a long way to make sure your investment isn’t a flop in six months. If any landlords are reading this, we’d love to hear any other suggestions or advice you may have for “newbies.”
Christine is the Content Marketing Coordinator for Homes.com. She's a small town girl at heart, who currently lives in Norfolk, VA with her husband and their fur baby. When she's not working, she enjoys cooking, decorating, traveling, and binge watching Netflix. As a proud Virginia Tech alum, she also loves cheering on the Hokies!
