Are you looking for a way to make passive income? Becoming a landlord may be the side hustle for you.
Before you jump in with both feet, we’ve compiled a list of things you need to know about being a landlord in 2021.
Becoming a Landlord in 2021
The first thing you need in order to be a landlord is to own property. Do you already own a property, or will you need to purchase one? Mortgage rates are at a historic low, so 2021 is a good year to consider a rental house purchase.
Will your property be a residential, commercial, or vacation rental? Perhaps, you have an empty garage apartment or a room in your home you’re interested in renting out. All of these are viable options.
Before becoming a landlord, you may consider consulting a real estate attorney to help draw up a lease agreement. You may contact your insurance agent to make sure you’re properly insured. And finally, you may contact your accountant to make sure you’re properly documenting income and expenses for tax purposes.
Tasks Involved in Being a Landlord
Many people believe becoming a landlord is a quick path to easy money, but that’s not exactly true. Just like any other business, there is a certain skill set necessary for success. If you don’t possess them all, you’d be wise to hire experts that can cover your deficits.
It sounds easy enough, but there a few skills required to find quality tenants quickly. You’ll get a crash course in marketing and advertising when you learn to place ads in print or online to attract tenants.
People skills and sales skills are a must when it’s time to show the property to prospective tenants. And vetting those tenants will bring out your inner detective, or you may choose to employ the services of an online screening service.
Maintain the Property
Maintenance and repairs are a part of any property ownership. As the owner of a rental property, you’ll save money if you have the skills to do most of this yourself. However, it will save you money, in the long run, to hire a professional if you don’t have the skills.
Manage the Business
This includes making sure you have legally-binding rental agreements kept on file for each tenant, collecting monthly rent, tending to insurance or legal matters that may arise, and maintaining basic accounting records for tax season.
Protect Yourself as a Landlord
Finding good tenants is an important aspect of becoming a landlord. Not only do you want to protect yourself, but you also want to protect your investment. You need to be able to verify that your potential tenants present little risk.
Contact RentSpree and take advantage of their free service offered through TransUnion credit bureau to perform a credit check, criminal background check, and eviction history for potential tenants. Verification through RentSpree also proves that you did your due diligence to screen tenants.