Being a landlord and owning rental properties is a business and should be treated as such. While you may not spend 40 hours a week in an office like an accountant there is still work to be done. As you purchase more properties you will have to hire staff to help you run your operations, maintenance people and admin staff will be needed. Let’s look at the business of being a landlord and what your responsibilities are and what you need to hire people to do.
Be the Boss
In the beginning it may be you that cleans up apartments or does repairs but as your business grows you need to work on your business and not in it. Real estate moguls don’t patch dry wall they hire people to do it while they focus on getting their next deal. You need to adopt the same attitude. Learn to delegate, build systems so that mundane tasks get done by someone else.
Have Great Apartments
They key to successfully be a property owner is finding great tenants. Great tenants want a great place to live and it’s your business to provide that. Make sure that each apartment is fixed up and move-in ready before you start advertising. Use durable yet quality materials that will survive the wear and tear tenants can put your property through.
Know the Laws
It doesn’t matter what type of business that you run there are going to be laws that dictate what you can and can’t do, the onus is on you to know and understand them. Knowing the relevant laws will protect you from getting sued. Make sure you understand tenant law in your area, how evictions are handled along with discrimination it will save you thousands in the long run.
Find Great Tenants
Do not rent to the first person that comes along looking for an apartment. You may get lucky and they turn out to be great or you could end up with the tenant from hell. A tenant you could have avoided with a little screening in place. Market your rentals aggressively so that you have a choice of tenants coming to you. Which brings us to the next point….
Screen Your Tenants
This is hands down the most important job that you have, bad tenants cost money. Check references, prior evictions, employment and credit history before you bring out the lease. This will save you time and money and allow you to continue growing your real estate empire.