Taking the risk to be become a landlord can be a hard stepping stone. There is no course on it and there is no certification to ensure this career can be successful.
Partially, the reason for this is because being a landlord is actually quite easy. Some people have called it making money while you sleep. Well, I haven't reached that point in my life, but as I get better, it is really becoming that easy.
So to new landlord, how does one actaully take this initally step and still minimize risk? If you make one wrong move, you literally can lose your entire house!
So here's my suggestion:
First, the safest thing to do is rent out a room in your own house. That's right! One may argue that they don't want to live with their tenants and rightly so, living with your tenant can be a pain, but who says learning is easy.
By living with your tenent, you get first hand understanding in how a tenant behaves. You can then compare your tenant's behaviour and begin categorizing the type of tenants you want. The skill you are looking to develop is to find good tenants.
Secondly, by renting out a room, you don't have to spend the money to buy a whole new house just to rent it. Renting out a room safely allows you to test the waters without having to dive completely in it and have no point of return. If didn't like your new career as landlord, you can always leave the room empty and still not suffer a huge loss.
Thirdly, by living with your tenant, you can closely monitor your house. Often times, houses are wrecked because the landlord is not there to make sure the tenant is behaving appropriately. This prevents fire and other dangerous behaviours that your tenant may resort to when you are not around.
The learning phase to becoming a landlord can really be dangerous and stressful, if not done correctly.
After you become comfortable in your ability to filter out the good tenants from the bad, then you can become renting houses outside of your reach.
A landlord career always starts off as a part-time job. Don't quit your day job because you will need the extra cash to invest in your second career. Also, do not expect to make huge amounts of money quickly. If it was that easy, everyone would be doing it.
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