How To Become a Landlord
Posted on: 2 June 2017Share
Buying a house is one of the wisest investments that you can make. This is because it is a place where you can live, or you can use it as a way to make money by renting it to a tenant. It is also possible to live in the house and rent a room out to a tenant to bring in some extra income. There are several steps that you should consider taking to become a homeowner and landlord in no time. Below, you will find a few tips that you can follow to accomplish your goal in a timely manner.
1. Buy a House
In order to become a landlord, you must first become the owner of a house. Think about how you want to use the house before buying one. For instance, do you want to rent out rooms, or do you want to rent the entire house out to one tenant? Once you have a good idea about what you want, apply for a loan if it is needed. You should then speak to a real estate company so an agent can show you a few properties, as well as walk you through closing on a house when you find the one you want.
2. Post a Few Classified Ads
When your house is ready to be rented out, start posting classified ads to let the public know about it. You can take advantage of the free classified ad websites, or you can post ads in your local newspaper. Don't forget to put a sign in your yard that informs the public that your house is up for rent as well. Make sure your contact information is included in your advertisements and on the yard sign.
3. Obtain a Professional Rental Agreement
Once you have put ads in place, you should work on getting a good rental agreement for your tenants to sign. You can actually create the rental agreement on your own, and you might be able to print out forms online. However, it is a good idea to hire a lawyer to handle the task, as he or she will have knowledge of the real estate industry and will know what to draft up.
3. Start Screening Applicants
When you have a nice amount of applicants to consider, you should then begin screening each one. There are companies that can screen the tenants on your behalf. For instance, each tenant will be screened for past evictions, criminal activity, job history, and a few other things.