Being a landlord of income properties is no easy task, especially for a first time landlord. While becoming a successful landlord will take time, we can help make it easier with 21 quick tips.
Tip #1: Mentality makes a big difference in becoming a successful landlord. For instance, use the word rental income properties rather than rental properties. This will remind you that your main focus in being a landlord is the income.
Tip #2: You are a real estate investor first, landlord second. Because you are running a real estate investing business where income is the #1 priority, you have to be aggressive (when the situation calls for it) in collecting rent from tenants of income properties.
Tip #3: In order to be a successful landlord, you have to first find the best rental income properties. These will help get you the best real estate investment loans, ensuring you pocket as much rental income as you can.
How can you find the best income properties in the housing market? Use an investment property calculator.
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Related: How to Find Investment Property for Sale Quickly and Easily
Tip #4: Set up a reserve fund for your income properties as you plan for real estate investment loans.
Tip #5: Consider setting up a real estate limited liability company for your income properties in order to protect your personal assets.
Tip #6: A successful landlord knows to only renovate when it will result in higher rental income and demand for the income properties. At the same time, don’t neglect necessary renovations for livability.
Tip #7: Invest in Airbnb income properties and make more rental income as a landlord.
Tip #8: Study the local real estate and fair housing laws. Enlist the help of a real estate attorney if necessary.
Tip #9: Use every means you can for marketing income properties: newspaper ads, signs, websites, etc.
Tip #10: Take out landlord insurance and require renters insurance from your tenants.
Tip #11: Always outline pet requirements in the lease agreement: what types are allowed, the pet deposit, what the pet owner is liable for, etc.
Tip #12: Screen tenants of income properties thoroughly: interviews, references, job history, and even credit reports. This will make rental property management easier if you work to find good tenants.
Related: How to Pick the Perfect Tenant from Multiple Applications
Tip #13: Before tenants move in and after they move out, record the condition of the investment property by taking photos/videos. This protects a landlord against lawsuits if he/she is forced to withhold the security deposit.
Tip #14: Inspect income properties regularly to spot damages early on. Be sure to give 24-hour notice as well as have inspections outlined in the lease agreement.
Tip #15: Tend to repairs as soon as possible.
Tip #16: Take care of the landlord-tenant relationship: listen to tenant concerns and respect their privacy. This goes double for Airbnb income properties in order to get good reviews.
Tip #17: For anyone you work with as a landlord (contractors, attorneys, handymen, etc.), try to get references beforehand to ensure you work with the right people for your real estate investing business.
Tip #18: Be an organized landlord. There is rental property management software that can help with this aspect.
Tip #19: Consider “cash for keys” to avoid the lengthy eviction process.
Tip #20: Learn about tax deductions for income properties to save money.
Tip #21: Never hesitate to ask for help from any professionals in the real estate investing business.