Landlord Guide

The housing marking is one of those areas that seem to be a bit like a seesaw. If you can purchase at the right price, you can soar high and earn some really good money…but if the bubble bursts, you’ll lose a lot, including a ton of money. Becoming a landlord is a great idea if you have good legal advice and enough finances to cover your investment. Being a landlord can be a really lucrative business if you know what you’re looking for. If you’ve been on the fence about becoming a landlord, there are some things to keep in mind.

Can your Finances Support you to be a Landlord?

Think that you can become a landlord? Here are a few things to keep in mind before making that leap!

  • You need to have your finances in order. Period. If you are looking at having a rental home as an investment opportunity, your finances need to be on point. Take the time to learn your credit score and really see what options you have at for a mortgage loan. Having stellar credit will definitely come in handy in getting you the best possible APR for your new rental home loan!
  • Never settle for the first home loan offer. You have to shop around! Seriously! Depending on the institution that you’re wanting to get the home loan from, you’ll have options to consider. Check online, check with your local bank, check with credit unions and anything else that may be out there to make certain that you’re getting the best possible APR for your new loan. When you’re new to the landlord world, you don’t want to be spending an arm and a leg for interest!
  • Think of all the “things” that can and will cost you money as a landlord. Yes, you’ll get a monthly rent check from your tenants each and every month, but you’ll also be responsible for fixing and repairing anything and everything that comes up. Broken appliance, ripped screens, having to replace carpet or other things that got broken when the current tenant moves out…all of those things are likely to happen and cost money! It’s true that you’ll be getting a check each and every month for rent, but it’s also wise to set some of that aside so that you have it handy when those repairs start to pop up!

Before becoming a landlord, always seek legal advice. Understand what rights you have as a landlord just in case you happen to get a problem tenant in your home. And while you’re talking to them, have them help you draw up a super strong rental agreement as well. Anything that you can do to help prepare for your adventure as a landlord is helpful!

Focus in on your finances and take the time to truly dissect them completely. The idea of being a landlord is great, but if you don’t have the financial means to make it happen, your dream is never going to turn into a reality.