Being a landlord is no easy task and yes, you can fail. This is your Myndful Minute, where we’ll talk about some key truths that you need to prepare for when you decide to own a rental property.
Resident Protections and Your Lease Agreement
One of the first things to understand is that owning a rental property is not an easy thing to do. You will encounter a lot of laws and regulations. The residents you’re placing in your property are protected by local, state, and federal government laws.
The lease agreement you sign with your resident is a bilateral contract. You cannot pick and choose when you’re going to enforce the lease and when you’re going to ignore it. Running a rental property based on emotions and feelings will not work. You must adhere to your rental contract at all times.
Treat Your Rental Property Like a Business
When you own rental property, you are running a business. There’s no place for emotional decisions when you’re running a business. Don’t let your feelings get in the way. Remember that you have to follow what’s legal and correct; not what you think is right.
Residents have a lot of rights, so you can’t just do and say whatever you want. Sometimes, landlords will try to make deals with residents. When you come to an agreement with a resident over late rent or some other dispute and then the resident doesn’t do what they promised to do, it’s natural to get upset. Many owners feel taken advantage of by the residents they were trying to help. Avoid emotional reactions and stick to business decisions. You have to establish some policies and procedures, and you have to be careful not to deviate from them.
Buying a Rental Property: Know Your Goal and Set a Strategy
When you buy a rental property, you need to have an end goal and a strategy in mind. Many investors are anxious to buy an investment property, but they don’t know why they’re buying or what their end goal might be. You have to know how a potential rental property fits into your strategy and gets you closer to meeting your goals.
- First, create your investment goal.
- Then, create a strategy that will get you towards that goal.
- Finally, buy the property that meets your goal and serves your strategy.
Don’t take the last step first. Many investors who have done this the wrong way will tell you from personal experience that it’s no fun at all.
Thanks for joining us for this Myndful Minute. If you have any questions about buying or renting out investment properties, contact us at Mynd Property Management.