How To Become a Landlord

by Shenron on December 5, 2009

The property business is a very interesting market to try and breach. Given the state of the financial markets at the moment, the housing situation could be looked at in two very different ways. While some people are struggling to make ends meet on their mortgage, others see the number of foreclosures and vacant properties as a goldmine for potential business investment. Now, while the market is down, may be the perfect time to buy a house for future years. Some people can’t see the market climbing back up to a level that it once was, but others see the financial and housing market as a cycle, one that always repeats itself. If you’re part of the latter thinking group, buying property and becoming a landlord until you can turn the property around and sell it, could make you more than your current job.

Landlord How To Become a Landlord

Before anything else, your first goal is to see how much money you can afford to spend each month on a house. It’s best not to think that you will have the property rented all year and that as soon as you buy it, you’re going to be able to rent it within the following days. Allow for some leeway time to find someone to put into the house. To properly calculate figures for how much your monthly expenses will be, such as your mortgage, property taxes, and general upkeep bills, you should find a property that you’re interested in renting out. Typically, the people interested in renting houses are ones that cannot get a mortgage of their own. This means that houses in lower income neighborhoods are usually your best bet in terms of the likelihood that you’ll be able to find a tenant in a short space of time. You may be able to find a list of local houses in lower income neighborhoods that are currently for sale from your real estate agent. This list will give you a good idea of where to start with calculating figures.

Once you have a general idea of how much things will cost each month for a rental property, you have to next figure out whether or not it will be worth your while to purchase a rental property. What I mean by “worth your while” is that if you are not able to rent the property for enough money to pay for the expenses on the house each month, there’s no point. You don’t want to be paying for the house while someone else lives there. So, if you are able to find a house in a good area that will bring in at least what you owe each month, you’ve found a winner.

Landlord 5 How To Become a Landlord

Lastly, you have to now find a tenant. Your two best options are to either go through a real estate agent who will be able to market the house more than you can if you do it on your own, or put a for rent sign in the yard and hope for the best. Assuming it’s a high traffic area, your rental sign may garnish a lot of attention, but if it’s not, a real estate agent may be your best bet. Remember to go through all the hoops and make sure everything is in order each month. Also, keep copies of all legally binding contracts. Should anything go wrong in the house, you want to know your rights and what both you and the tenant signed to in the contract.

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