Landlord VS Everyone
So you think you want to be a landlord. You have saved up some money and you think buying rental properties may be the way to go as an investment. You think you may have more control of this than you do the stock market..so why not give it a shot?
Being a Landlord isn’t just buying a bunch of properties and sitting back collecting rent checks. As a new landlord, you should always learn the ropes from the ground up. Know your properties. Know of their condition, know their strengths and know their flaws. Know your realtor, your handyman, your plumber, your painter, know your accountant, know your management company, know your attorney and know your city. Most of all, know your tenant.
So you didn’t think you needed to know this much being a landlord did you? …Well you were wrong!
Successful landlords have some traits in common. In my experience most successful landlords:
- have their “steady Eddy” go-to guys that they can rely on when problems arise.
- are not penny pinchers and don’t cut corners.
- know how to treat rentals as a business and know that there are many expenses as well as revenues that come with owning rentals.
- treat their “go-to guys” with respect and in return are treated with respect.
- appreciate and accept guidance from those who know their trades as a living.
- establish fair relationships with their tenants,
- possibly most importantly, find tenants who will have respect for their property.
If the proper tenant is found, the landlord should rarely hear from them. In my experience, you can spot a trouble tenant from a mile away. Here are my top 3 red flags in potential tenants that all landlords should look out for:
- A tenant who agrees to pay exorbitant fees is generally one who is not money conscious or property conscious.
- A tenant who has delinquent payments on necessities such as utilities can be seen as a problem tenant waiting to happen.
- A tenant who delays in providing proper paperwork in order to process a lease is also a bad sign.
Future landlords, if you follow the advice above, you should have no problem building a property portfolio that will be a successful investment for years and years.