So, You Want to Become a Landlord? 5 Things You Need to Know
Did you know that rents shot up almost 30% in the Phoenix area last year and in 2022, rents are expected to shoot up another 20%? All of this proves to be a great time to get some investment properties and become a landlord.
If you are still not sure about whether becoming a landlord is for you, we have created a list of the top five things you need to know on how to become a landlord. So keep reading!
1. Do Not Try to Do It All Yourself
Too many newbie landlords end up taking on too much and trying to do it all themselves. That’s an easy way to get burnout, exhausted, and sick. The best way to become a landlord is to hire a property manager like Fort Lowell Realty to take care of your properties, while you cash in the cheques.
2. Try to Reduce Vacancies as Much as Possible
Your priority being a landlord has to be to reduce vacant properties as much as you can. You can do this by renting your properties for lower than the neighboring places, or by offering incentives, like a gym membership or a free air purifier. Experiment with this to see what works best for your properties.
3. Focus on the Cash Flow Numbers
Do not get overexcited by the shiny objects around you. You need to focus entirely on the cash flow a property brings in, not on how beautiful the property is or how much acreage it has. The numbers will never lead you astray, whereas running after shiny objects definitely will.
4. Don’t Overextend Yourself
Slow and steady wins the race, in life, and especially in real estate investing. Do not buy too many expensive properties and overextend yourself financially. You don’t want to wake up at night in a cold sweat because you are worried about foreclosures or going bankrupt.
5. Network With Other Real Estate Investors to Learn From Them
If you are still new to the real investing game, it’s a great idea to network with other real estate investors, take them out for coffee, hang out with them at events, and learn from them. Soak in all their knowledge by osmosis so you can enhance your landlord business in turn.
They will be happy to share their knowledge with a newbie like you. Just make sure you give them something in return, like a delicious meal.
It’s a Good Time to Become a Landlord
There has never been a better time in Phoenix Arizona to become a landlord. If you are still standing on the sidelines, waiting for a sign, this article is it! Use the tips laid out above and become the best landlord possible.
Don’t forget to check out other articles on our website to keep learning about becoming a landlord and more. Bookmark our site so you can stay updated on the latest real estate trends.