Becoming A Landlord: What Should I Know First?

When you have financial goals, like college savings, retirement, or financial independence, becoming a landlord is an effective way to help you reach those goals.

Becoming a landlord through real estate investing is often described as a relatively passive source of income. In other words, it’s a way to make money without a whole lot of work. But this isn’t always true.

While buying and renting real estate can be a passive way to make money and build wealth, it isn’t as easy as it might seem.

Your real estate market, investing strategy, and property management all factor into how much work you put into it.

If you’re considering becoming a landlord, there are some things you should know before you get started.

Before Becoming a Landlord

Know Your Real Estate Market

When you buy a rental property, you need to be familiar with the local real estate market. Not only do you need to know the pricing and values of property, but the market rent on the properties in the area.

Real estate markets can vary widely between regions. Even comparable homes in different neighborhoods of the same city can have very different market values.