5 Things All Successful Landlords Should Know

If your dream of being a landlord is about to come to fruition, there are a few things you should know about owning and managing real estate. Whether you approach the property as an investment or as a business, there are some things all successful landlords should know.

1. Tenants

The lifeblood of a successful real estate investment is the tenant. Make sure you find good tenants with dependable backgrounds, if possible; and try to understand the statutes and laws governing landlord application refusal protocols before you decline rental to anyone.

2. Business

Long-time landlord and property developer Steven Taylor strongly suggests you remember your real estate property is a business and must be run as such. You may find you need help from an accountant, attorney, or property manager – so, let them help you.

3. Price

Keeping your building full is important but pricing the units below market may attract poor tenants. Understanding fair market rental prices in the area can help you decide how much to charge for your location.

4. Insurance

Make it a requirement in your rental contract that tenants carry adequate rental insurance. This will help you avoid unnecessary litigation from fire, flood, or other types of building damage.

5. Rules

As difficult as it is for some to believe, you cannot be a friend or buddy to the tenants in your buildings if you are a landlord. If you break a rule for one, there is a precedent for others to expect the rule will be broken for all. Also, if you have a rule, enforce it, especially late rental fees – otherwise, why have the rule?

Understanding the business world you are entering when you become a landlord can provide insights into how to avoid future problems. Protect your investment by following the simple rules above and you may find yourself enjoying many successful years as a landlord.

 Image by StockSnap from Pixabay


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