1. Get to know your State/Province
Find out where property is expensive, where it isn’t and where property is showing excellent growth on investments. Your state/provincial landlord-tenant website is a very good resource for landlords because it often has a page that lists vacancy rates, average rental rates and the socioeconomic status of specific areas. Real estate calculations vary widely, so you will need to figure out the start-up costs involved, including mortgage payments, agent’s fees and taxes. Subtract the expected rental income, allowing for a 5 percent or so vacancy rate, and determine your shortfall, if there is one. This will depend on the area in which you purchase property.
2. Find out the duties of a landlord in your State/Province
The government has a very informative website that lays out the duties and disclosure responsibilities of a landlord. You can find this website by searching in Google: “[your state/province] [landlord and tenant laws]”. Another thing you can do is ask a local real estate agent. Real estate agents usually know a lot about local landlord and tenant laws.
3. Be selective when buying property
Renters are usually students, newly married couples or single parents – usually middle class. If you would like to rent to students, consider areas around a University but not in a major city. This will keep your acquisition costs low, and margins high. If you want to cater to families try a suburban area near a bus line.
4. Consider the condition of your property
How much money are you willing to invest? As the landlord, you are responsible for repairs, so it’s a good idea to get a home inspection before you purchase the property. Tempted as you may be to purchase the cheapest property possible, in the long run, you will likely lose money on repairs and upkeep.
5. Consider whether to furnish the apartment
This may depend on whether you are going to rent to students or not. Purchase comfortable, neutral furniture that will appeal to the widest variety of people. If you choose to furnish the apartment with electronics, you could charge a separate fee for the rental of those items.
6. Build your reputation
Your job as a property investor is to make sure your renters are as comfortable, safe, and happy as possible. Tend to complaints as soon as possible and go above and beyond for your tenants. If you do this, you are sure to get referrals.
Randy Bailiff
Dean Graziosi Investment and Life Coach
1. Get to know your State/Province
Find out where property is expensive, where it isn’t and where property is showing excellent growth on investments. Your state/provincial landlord-tenant website is a very good resource for landlords because it often has a page that lists vacancy rates, average rental rates and the socioeconomic status of specific areas. Real estate calculations vary widely, so you will need to figure out the start-up costs involved, including mortgage payments, agent’s fees and taxes. Subtract the expected rental income, allowing for a 5 percent or so vacancy rate, and determine your shortfall, if there is one. This will depend on the area in which you purchase property.
2. Find out the duties of a landlord in your State/Province
The government has a very informative website that lays out the duties and disclosure responsibilities of a landlord. You can find this website by searching in Google: “[your state/province] [landlord and tenant laws]”. Another thing you can do is ask a local real estate agent. Real estate agents usually know a lot about local landlord and tenant laws.
3. Be selective when buying property
Renters are usually students, newly married couples or single parents – usually middle class. If you would like to rent to students, consider areas around a University but not in a major city. This will keep your acquisition costs low, and margins high. If you want to cater to families try a suburban area near a bus line.
4. Consider the condition of your property
How much money are you willing to invest? As the landlord, you are responsible for repairs, so it’s a good idea to get a home inspection before you purchase the property. Tempted as you may be to purchase the cheapest property possible, in the long run, you will likely lose money on repairs and upkeep.
5. Consider whether to furnish the apartment
This may depend on whether you are going to rent to students or not. Purchase comfortable, neutral furniture that will appeal to the widest variety of people. If you choose to furnish the apartment with electronics, you could charge a separate fee for the rental of those items.
6. Build your reputation
Your job as a property investor is to make sure your renters are as comfortable, safe, and happy as possible. Tend to complaints as soon as possible and go above and beyond for your tenants. If you do this, you are sure to get referrals.
Randy Bailiff
Dean Graziosi Investment and Life Coach