Maybe you already own income property, or perhaps you are thinking of buying an investment for your retirement portfolio. Did you know the number one reason income properties do not succeed is due to poor management?
That’s right! So why not learn to “self-manage” and reap the rewards of extra cash flow and peace of mind. It really is not that difficult or time consuming. I wish I had someone tell me the following things before I became a Landlord 25+ years ago.
1.Treat your tenants fairly. They are paying your mortgage and it is because of them you are going to have a successful investment.
2.Never ask for rent. Everyone knows their rent is due on the first of the month, and asking for it just sets up a “Landlord as Beggar” scenario.
3.Always do credit checks. You never know who is hiding an eviction or worse.
4.Don’t micromanage your property. Or if you do, don’t make it obvious. No one wants to see a “nosey” landlord on a daily basis. It makes for animosity and distrust.
5.Accepting late rent even once without a late fee just because you are a nice guy sets up a bad precedent. After 2 late rents, I have it in my lease the tenant will be given a 30 day notice to leave.
6.Accepting dogs can be a disastrous decision. Not only can some dogs be noisy and bite, but some Insurance Companies do not allow some breeds and will not pay for a claim if there is an incident. You cannot imagine the problems many Landlords have from dogs. It’s just not worth it.
8.ALWAYS have tenant fill out a “Move-in Checklist”. This is the single best protection for you in case you have to go to court. Take photos if necessary.
9.Empower your tenants by allowing them to make some decisions. For example, I do not assign parking spots in one of my 4 plexes, I let them figure out amongst themselves who parks where.
10.Cats may not be your favorite animal, but 75% of the renting population has a feline. A cat cannot bite neighbors, is quiet and doesn’t chew wood work. An extra pet deposit can be taken on top of the security deposit.