Over 10 million Americans earn money from rental properties, which shows that becoming a landlord is a great venture.
Although it sounds overwhelming, becoming a landlord gives you a passive income, encourages you to be independent, and ensures a secure investment. Luckily, once you know the basics, it’ll be easier to start the venture. Perhaps you’ve toyed with the idea of becoming a landlord but you’re not sure where to start.
Sounds like you? Don’t worry, you’ve come to the right place. Here’s how to become a landlord.
Buy an Investment Property
All types of landlords must buy an investment property they can rent out. As you browse options, make sure it’s within your budget, is in good condition, and will be desirable. For instance, choose a unit near the city center or public transport so your listing stands out.
Understand Landlord-Tenant Laws
A major part of becoming a landlord is understanding the laws. If not, you could find yourself tied into a contract you can’t break. Note, these vary between states so hire a lawyer who can teach you about the laws and guide you through the process.
Buy Landlord Insurance
Before becoming a commercial landlord, it’s important to buy insurance. This specific insurance is designed to protect your property from structural damage. But landlord insurance only protects you, so ask tenants to apply for rental insurance for peace of mind.
Screen Tenants
As a retail landlord, you must screen tenants to find the best fit. Aside from thoroughly reading through applications, run credit and background checks for peace of mind. You should also check the prospective tenant is in employment and reach out to the past landlord to see if they’ve been involved in commercial tenant evictions.
Offer a Lease Agreement to Tenants
To start benefiting from landlord jobs, offer a lease agreement to tenants. You can customize the contract but ask a lawyer for a second opinion, especially if it’s your first time. You should also check you have both signed it and give the tenant a copy of the lease for added insurance.
Maintain the Property
It’s a landlord’s responsibility to maintain your property and fix any problems. For instance, hire professionals to service an HVAC unit, clean gutters, and other issues like faulty appliances. To help you fund this, set aside 50 percent of your rental income so you can handle this.
So, if you charge $2,000 each month for rent, keep $1,000 into a maintenance fund for your peace of mind. You should also stay organized by keeping receipts and legal documents throughout the process.
How to Become a Landlord
Hopefully, after reading this article, you know how to become a landlord.
Start by buying a rental property, get landlord insurance, and familiarize yourself with the latest landlord-tenant laws. You must also thoroughly screen tenants and set aside funds to maintain the property as it will benefit your tenants. Good luck with your new venture!
Found this article helpful? Great! Then check out the rest of our blog for more tips and tricks.
Read More: How to Be a Good Landlord in 5 Simple Steps
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