Real Estate Report: Do You Have What it Takes to be a Landlord
Investing in a rental house can single handedly secure a college education or provide for a more comfortable retirement, but do you have what it takes to be a landlord?
Success in real estate investing, and life for that matter, is all about point of view. And, investing in a rental home will require you to adopt the endeavor as a small business to succeed. Too many people who decide to take the plunge and buy an investment property take the approach that real estate is a way to turn a quick dollar. But, there is a very rewarding financial gain if you take the approach that your investment property is a long-term endeavor. However, you will need to invest not only your money, but your time and energy as well.
As I've mentioned before, the upside of the housing market drop is the creation of a more affordable segment of homes. Couple that with today’s insanely low interest rates, and you've got a recipe for success in making the move to be a landlord. Not to mention the increased demand for rentals. There is a good online resource to analyze potential investments—and it's free! Visit www.ownamerica.com and use their case study calculator. You supply information on purchase details, annual rents, operating expenses, etc., and the calculator will provide you with investor equity, cash flow and rate of return.
If you are considering becoming a landlord, or already have rental property, here are a few tips on how to create success.
1. Treat your tenants as your clients. They are providing you your return on investment.
2. Minimize your vacant days—always keep an urgency to refill a vacancy. Don’t use the current economy as an excuse to let your property sit vacant for more than a week.
3. Work to get your rents in an automatic way, such as automatic debit. This will save you time, money and headaches on the collection side and is well worth any fee or setup investment.
4. If you do not have the time to oversee crucial elements such as rent collections, maintenance, repairs, selecting tenants , etc., consider hiring a reputable property management company.
Lauren Bunting is a licensed Realtor® serving Worcester & Wicomico counties.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
