Being a landlord isn’t all that good or bad but the reality is somewhere in between both the extremes. But if you’re plunging in the pool of real estate investment, few things would define success all the way through.
6 things to straighten-up right away
Not many would say too much but most people are under the impression that they can be landlords whenever they want. It’s assumed that only a couple of real estate contracts, a number of telephone contacts and a mailbox to collect rental payment are prerequisites of being a landlord. But, experienced property-owners realise the facts that goes beyond these few things. Property management is challenging and you would need the right resources and skills to thrive.
To claim that things in landownership don’t always go as planned would be the biggest understatement in today’s world. Complicated and damaging tenants, late payments, gradually soaring property taxes, possible issues with the neighbours, incomplete or breaking the lease agreements are a few things that happen quite frequently. Indeed, it requires a certain degree of patience being successful.
2. Personal investment expertise
Exceptional financial/money management is at the core of every successful real estate management. If you’re unable to adjust the right amount at the right places, turning profit and achieving the ROI would be difficult which further complicates business procedure.
For a property investor and landlord, personal finance/money management skills definitely come in handy. If you’re good at handling budget, maintain a surplus and have a perceptive approach for oncoming expenses, it’s obvious you’ll become a successful landowner whereas the opposite is true as well.
3. A vehicle that never fails
In-case you’re managing a handful of real estate units, you’ll be driving a lot to keep a personal check and also a professional responsibility. You might need a space to move, carry and transfer different items such as appliances, building supplies and furniture so on for which a durable transport is necessary. Having a personal vehicle saves additional expense that otherwise you would incur on public transportation whereas it also covers the insurance front.
“Damage to the vehicle is the biggest insurance cost so, the stronger the vehicle, less premiums payable. But, before buying a personal car, talk to your insurer concerning quotations on different models and makes.”
4.Basic handyman skills
Not everyone’s an expert on basic maintenance and repairs whereas some are simply too lazy to do these chores. Being a landlord, you’ll probably outsource most of the repairs tasks but there’re certain handyman skills everyone should be familiar with such as;
- Basic landscaping
- Patch the drywall
- Wash and dry the air filters
- Fix running toilets and unclog the drains
- Pull up the carpets
- Basic paint job
- Run a pressure washer so on
These are a few most basic skills that needn’t be outsourced, rather self-managed to save time and cost.
5.Cushion the cash
In competing real estate markets, most of the rental properties would be leased out without any difficulty. That said, real estate market is most volatile and things can change overnight for which a healthy cash cushion would ensure you survive the rainy days and able to sustain the rough patches.
6. Excellent interpersonal skills
“Perhaps the most underestimated yet most valuable art in property management and rental-housing industry is clear and simple communication. Majority of unpleasant and unlikely problems faced by landowners and tenants is due to communication gap or possible miscommunication.”
Whether someone’s introvert or extrovert, reserved or outspoken, significance of communication is crucial to clear the matter and resolve issues before they heighten and get more complicated. The more efficient the communication, better will be the outcome.
So are you prepared?
Indeed, being a landlord isn’t all too easy and extremely complicated matters are best handled by industry professionals. But one should be familiar with the basics, learn and groom.