Is being a landlord right for you? Find out what a landlord does here!
Becoming a landlord is a great way to make some extra money. It could even become your full-time job if you have enough properties or rent out in an expensive area. You might have the competence and the funds to try out becoming a landlord. However, everyone has different priorities and skill sets. Should you be a landlord?
The Work of a Landlord
Being a landlord is much more than collecting rent and hiring out maintenance or repair services. It involves many different skills and tasks. Before getting into it, you should know that you will need to do these things:
- Purchase property: Of course, one of the first things you will need to do is to purchase property. Ensure that you can legally rent it out before purchasing, and understand any repairs it might need before letting out.
- Understand local landlord-tenant laws: Study your local landlord-tenant laws to remain in good standing with your tenants and the law.
- Create a legal rental agreement: You might want to solicit an attorney to help you draft a complete legal agreement that will be consistent among all tenants.
- Advertise tenancy: Once all the basics are in place, you can start advertising the tenancy on one or more places online and in physical form.
- Show people the tenancy: Interested parties may want to view the place before deciding to rent. You may also need to communicate with people remotely about the property.
- Vett potential tenants: If the potential tenant is interested in renting, you should screen him with a thorough questionnaire or another vetting process.
- Collect rent: You are responsible for setting up a payment process, tracking payments, and dealing with late payments.
- Manage liabilities: When maintaining the property, pay special attention to liabilities like swimming pools and icy pavement.
- Maintain the property: Take care of ongoing maintenance like lawncare and any inspections necessary.
- Make repairs: If the tenant complains about the rental or you know about issues, make the repairs, which can be as ongoing as regular maintenance.
- Accounting and bookkeeping: Every business interaction involves managing finances. Keep track of all financial transactions.
- Manage Taxes: Don’t forget about paying taxes and getting all the tax deductions you can.
Should You Be a Landlord or Hire a Property Manager?
As you can see in this very brief guide, being a landlord is a lot of work. Are you prepared to take it on? If you prefer someone else manage the property in Maryland, Clagett Enterprises can be your trusted property manager!
If you prefer commercial real estate investing, Clagett can be your consultant!
Trust the Professionals at Clagett Enterprises for Your Realty Needs
If you’re looking for an experienced property management company, the perfect realtor for your property, or a professional to assist you during your purchase of any home, you can rely on Clagett Enterprises. Clagett Enterprises is a full-service real estate company with almost 30 years of experience in the Frederick and Western Maryland area. For assistance with commercial sales, leasing, management, and development and consulting, contact us online or give us a call at 301-665-6009. To meet our team and see some of our beautiful homes, follow us on Facebook and Linkedin.