You’d think that the phrase “part-time landlord” would be an impossibility. Any real estate investment has to be a full-time job, right? But it can be done. How? Let’s look at some of the work involved — it’s important to know what you’re signing up for:
With the rise of Airbnb allowing you to rent out a room in your home, many are considering becoming a landlord in a bid to earn extra income. If you have the space or a second home, and local laws allow it, it seems like an advantageous situation.
There are benefits and risks to becoming a part-time landlord. Maintenance and upkeep have to be taken into account, but becoming a landlord can be a great choice for generating wealth. However, in order for this to happen, you’ll need some support. Here are a few ways to get support for your new venture:
Time invested in picking good tenants can be the difference between becoming a landlord who’s successful and one who’s constantly stressed. You may be tempted to take shortcuts in screening tenants, but there’s plenty that can go wrong.
To avoid such headaches, be clear about acceptable payment methods for rent: check, money order, cash, credit card or whatever. Consider including penalties for late payments in your leases — they’ll provide you with leverage if a renter gives you continuing problems.
The result of a bad tenant has a huge ripple effect on your time and money. You have to go through the removal process, fill the space again and make sure your property’s ready for the next tenant.
Even interest rates can affect your business. When they fall, it’s often cheaper to buy than rent, so demand for your unit(s) may drop. Lowering the rent to remain competitive can put a cramp in your ability to make a buck. Researching locations and tenants are essential.