Becoming a Landlord

Becoming a Landlord

You have decided that you want to own real estate property. You have some money to invest and you are ready for years of rental income, tax deductions, and equity growth. Real estate investment has traditionally been a relatively secure long term strategy to build wealth, and your strategy is to buy numerous properties and manage them yourself. However, what is it really going to take to buy and hold these investments, and make sure they earn you money over the years?

Even during strong economic periods, maintaining a portfolio of successful investments takes time, energy, and money. Owning an income property typically means being available at any time in case of emergency. Having the right personality, and perspectives, will determine whether a property owner succeeds or fails at holding and managing properties. Patience, responsiveness, and communication skills are hallmarks of a solid real estate management strategy.

The ability to plan is also an essential component for long term success. Developing a long term plan will help define goals and objectives and manage your growth. A solid plan is a reminder of where you are heading, and how you will get there.

The first step towards a career in property management involves self analysis. Before putting any financial effort into property management, you must ask yourself if you are prepared to commit to a long term strategy. What is your temperament?

Can you handle emergencies or financial difficulty? Are you a good judge of character, can you spot troublesome, potential renters? These and other questions should be addressed to make sure that you would be able to manage each rental situation.