You don’t need to be in a royal family to become a lord! More than 10 million Americans own at least one rental property, and they earned more than $350 billion in income in 2018.
If you want to make a lot of money and power, you should become a landlord. Yet the process of becoming a landlord takes time and effort. There are a few landlord tips you should learn to get your career started.
How can you get your hands on real estate? Who should you go to for help as you start your career? How can you attract great tenants and follow the law?
Answer these questions and you can become the best landlord in all the land. Here is your quick guide.
Get Real Estate
You have a few options to get a rental property. You can buy real estate in your area and be the sole owner and landlord. If you inherit a house or apartment from a relative, you can rent it out if the property is in your name.
If you don’t have a lot of money, you can invest in real estate. Pool your money with a couple of other investors and offer to be the landlord for the building. You can get a bigger share of the profit in exchange for offering your time.
The more properties you have access to, the more tenants you can appeal to. Try to buy a house, an apartment building, and a condominium.
Study Landlord Laws
Landlords must follow strict laws to avoid discrimination and protect their tenants from harm. Each state is different, so you should talk to a housing lawyer based near you.
Some cities also have their own laws, especially with eviction and rental prices. You may not be able to raise your monthly rent without your tenant’s permission, even during times of high inflation. Visit your city’s housing board to see if you need to follow any special regulations.
Draft Good Lease Agreements
Your lease agreement should lay out what your responsibilities are and what your tenant needs to do. In general, a tenant is in charge of cleaning their property and being respectful to other tenants. However, you are in charge of cleaning common areas and managing conflicts between tenants.
Describe important property management details like who you will call to make repairs to your roof and basement. As you are marketing to potential tenants, you should give them copies of your lease agreement. Your transparency and attention to detail may convince them to sign up with you.
Become a Landlord Today
You can become a landlord once you understand a few important practices. You should buy as much real estate as possible, and you can expand your options by pooling your money with others.
Study landlord-tenant laws with help from a local housing attorney. Write a lease agreement that conforms to those laws. To win potential tenants over, give clear information about how you will run the property and what their responsibilities are.
These tips are just the essentials for new landlords. Read more guides for beginner landlords by following our coverage.