Question
what do I need to know before I become a landlord?
I'm 21 years old, college student, $20,000/year income, excellent credit. I'm living rent-free currently, have very little in the way of expenses with about $60,000 in the bank. I'm looking to invest in a couple of houses that I would rent out. with the economy the way it is I am not really making any interest on my money so I am contemplating buying a house or two as an investment. I'm looking at a couple of houses that are valued at approx. $225,000 that I'm guessing would rent for around $1700/month + utilities. My only concern is that it would be a lot of maitenance on my part. I pretty much know what I would be getting myself into as far as economics go but can anyone tell me what the requirements of a landlord are? I ran the idea by my parents earlier and they thought it was a smart idea but they've always owned their homes and couldn't tell me much in the way of how the landlord/tenant relationship typically goes.
2 months ago - 4 answers
Best Answer
Chosen by Asker
Ask yourself a question: Can I survive the mortgage + Property Tax + Insurance if I can only have 50% occupancy? As a landlord, you have to learn how to advertise for tenants on internet or with a Realtor. You have to learn how to do background /credit and criminal check for prospective tenants. Have to learn how to prepare a lease that protects you as landlord. Learn eviction procedure if tenants fail to pay rent. You have to do maintenance like general repair, repaint and carpet shampoo after each tenant move out. Have a list of service man number on hand like handy man, plumber, electrician, lawn service, house cleaning service. It is not easy but I think you can learn. At 21, if I were you I will enjoy my life, my youth, have a grand time of my life. You can be a landlord later!
Source(s)
Landlord
by peonywhite
2 months ago
Asker's Rating: 
Other Answers
Finding tenants, answering calls for repairs at 2 am. Laying out 10k for a new burner, Evictions for nonpayment, overcrowding, subletting, gutting the house and disappearing. Takes a lot of time, money, aggravation and endurance.
by sassy25- 2 months ago
I'm not sure how you have 60k in the bank with a 20k /year job and where you are located that you plan to be able to rent out a house for 1700/month.... But one thing is too deffinately make sure you have the rent agreement in writing. Yes, if the toilet stops up and creates a bad mess, you will most likely have to pay for the repairs both to the toilet and any damage from the overflow. An if the air conditioner quits working, you'll have to replace it on your cost. However if the house needs some painting or other minor repairs, you could suggest to the renter that if they do the repairs themselves, you will give them a set amount off the rent. Again, have everything in writing. Just in case you have to take them to court to get your money from them.
by RB- 2 months ago
I use to be in real estate, honestly lasted for six months because I joined when gas prices just stared sky rocking. But Most real estate companies will become the landlords for you. For a fee of course. But one of the books I saw in the office I worked in (which had a lot of rentals) was believe it or not PROPERTY MANAGEMENT FOR DUMMIES.
by dfpb- 2 months ago