The Beginner’s Guide to Being a Landlord

By Keith Blazek0 Comments

Rental properties are an attractive investment option because they often appreciate in value over time and provide a steady cash flow. They become even more powerful when they are purchased within the tax-free or tax-deferred environments of Roth or Traditional IRAs because the steady cash flow is not hindered by the crippling effects of taxes. A recent Investor.com article by Reed Karaim outlined seven smart moves that one should consider before taking the next step and becoming a landlord. Here are a few of them:
 
Recognize that being a landlord is a business.
Many people don’t realize the type of work that is involved in being a landlord. They may assume it is the same as owning their own home but don’t anticipate the work necessary to be successful. Make sure you have a solid business plan in place before investing in a rental property.
 
Start small.
Start with a single-family home or only one property. It might not be the best idea to jump right into owning an apartment building or condominium. Once you gain some experience you can branch out into different avenues.
 
Don’t invest somewhere you don’t know.
It is always prudent to check out the property and surrounding area while you perform your due diligence. Starting out with an out-of-state rental property could cause you unneeded stress and headaches down the road.
 
Get professional help when you need it.
Use available resources to help you along the way. You should consult with a realtor, lawyer, or property management company as needed. This is an important point for self-directed investors. IRS rules (IRC 4975) prohibit you from performing work on any asset you own in your IRA.
 
Keep your tenants happy.
This may be the most important point. Finding and keeping good tenants is the most important factor to a successful long-term real estate investment. Vacancy is the biggest cost you’ll face as a landlord so remember that it is your job to keep your tenants happy so they want to stay with you.
 
Investing in rental properties can be a lucrative investment and many Equity Trust clients have found success in this field. As with any investment it is always wise to do your homework before making any financial decisions. Lucky for you, Equity University has education that allows you to learn from others’ experience.  The hour-long audio session about rental properties in the Diverse Real Estate Investing Strategies product provides seven different real estate topics, presented by successful clients or industry experts. Additional topics include probate, mobile homes, raw land, and foreclosures.
 
Special offer: Get 10% off the product by using the promo code RENTAL. You can get your copy, at the reduced price, by clicking here.