Many of my clients and homeowners made the decision to lease out a property to enable them to buy their next home. This immediately made themAccidental landlords and sent them sailing into the great unknown world of Tenant management. It is in no way easy to be a landlord and as attractive as it may be, its not for just anyone. One thing it is, is a way for you to improve your living situation while allowing for someone else to pay down a debt you otherwise could not afford. While that sounds nice and fuzzy, it can be a pure headache and a money losing venture if not attacked properly. So, in response to the many urgent calls and late night advice sessions, I will begin a series on how to landlord ONE property and how to avoid many of the time and money losing mistakes we make just because we are not used to this business. So below are the 7 topics most of you screw up on and we will slowly chip away and give you a quick heads up and solution to each. Good luck.
- Service Calls-The most expensive and detrimental phone call any landlord will make if not thought out and planned. We will learn how to make as few of these as possible and maybe never make them at all.
- Warranty-Its a small up front fee but can save you thousands down the road. Being educated on this option is the first thing I tell all new landlords
- Tenant/Landlord Relationship-We need to establish this up front and understand the dynamics of all interaction. It needs to be clear that you are the landlord and service provider and they are the tenant and customer. Your not drinking buddies!
- Time-Calling to ask if the check is in the mail should be the last call or contact you are making each month. I will explain how a lazy landlord loses money.
- Rental Rate-Just covering the mortgage is not always the goal here. We will look into a strategie that works best for the property and keeps the project running smoothly year after year.
- Shopping-Landlording is not an “on-call” dutie. Great landlording is retooling your daily thinking to assure the most efficient way to manage a property. Whether its the 24/7 shopping rule or building strategic partners, you will see many ways to go about your day but also manage your real estate wisely.
- Representation-As a landlord you can only do so much within your expertise, so finding someone to help you can be a breeze. We will touch on negotiating with a landlord rep to manage the daily load of your property if need be.
So the jist of this post is; Many of my Landlording friends need advice and I am going to give it. Pay attention and I gaurantee you that you will pay less and make more money holding onto that extra property.