How to Transition From Part-Time to Full-Time Landlord
In the current economic climate, renting out an investment property can be a terrific way to supplement your income. If you reside in a larger city, you can even increase your monthly cash flow by a few thousand dollars!
If you decide to transition from a part-time to a full-time landlord, you can increase your earnings and improve your bottom line! However, there are factors you should consider before making this change.
While being your own boss can be thrilling, it’s important to be prepared to take on all the challenges that come with being a full-time landlord.
To learn about becoming a full-time landlord, check out the tips below!
Increase Your Savings
We recommend you start increasing your savings before becoming self-employed. Before quitting your job, you have enough savings to pay for at least six months of living expenses.
While calculating your monthly expenses, you can also look at areas where you can cut back on spending. If you have subscriptions you don’t use, you can cancel them and save some extra cash.
Make a Business Plan
As a part-time landlord, you have an income stream that you can dedicate to maintaining and upgrading your rental. However, as you transition into a full-time landlord, monitoring your rental property’s expenses becomes increasingly crucial because you won’t have another job you can rely on.
As such, we recommend greeting a detailed business plan you can follow once you establish yourself as a full-time landlord.
To maintain your existing rental business and give yourself time to expand your investment portfolio, you’ll need to stay highly organized. For example, be sure to store digital and physical copies of your records using an easily-navigated system and file documents away as soon as you can so that you don’t have to dedicate hours later on to sorting through your records.
In addition, be sure to schedule a meeting with each new tenant to review the terms of the lease. This will prevent future misunderstandings and make them feel like you care about their well-being. Some of the most important details to share are how and when they can pay rent, procedures for submitting service requests, and your communication preferences.
In addition, you can tell them which maintenance tasks you will each be responsible for and when you will be making your routine inspections.
Research Local Housing Markets
If you keep tabs on the typical rental rates in your neighborhood, you can increase your rent price as necessary. When you conduct a market analysis, be sure to compare your rates to properties in the same location with the same number of bedrooms, bathrooms, and similar amenities.
Additionally, if you’re expanding your portfolio, examine the rental market before buying a property to ensure your next investment is lucrative.
Market Effectively to Mitigate Vacancies
As a full-time landlord, it’s crucial to lease out your property as soon as possible. Vacancies impact your bottom line and can cost you a lot of money as you’ll still have to maintain the property when you don’t have tenants.
When marketing your property, be sure to take great photos and write an engaging property description. You can use traditional and online marketing methods in addition to posting on social media platforms.
Screen Tenants Thoroughly
The renters you select can influence your rental’s success. Problematic tenants can impact your bottom line by causing property damage or missing rent payments. As such, be sure to use a comprehensive tenant screening process that aligns with local and federal fair housing laws.
Find Responsible Contractors
Whether you have one rental or a few investment properties, it’s important to have reputable contractors on your side. Before hiring a contractor, read reviews to learn what prior clients have to say. You can use online resources like Angi or Yelp to find out more about contractors in your area.
Below is a list of important professionals that landlords will need throughout their career.
- General Handyman
- HVAC servicer
- General cleaner
- Carpet cleaner
- Real estate attorney
The transition from being a part-time landlord to a full-time property manager can be both incredibly rewarding and challenging. As such, it’s crucial to consider whether becoming a full-time landlord will suit your lifestyle and financial goals.
For instance, you might discover that acquiring more assets is a better way to spend your time than managing properties, rentals, and other landlord responsibilities. If this strategy sounds appealing to you, consider hiring a qualified property management company!
For the past six years, the Leenan Property Management team has showcased its dedication to supporting landlords in Regina and Saskatoon, SK. Our knowledgeable property managers are ready to help you achieve your investment goals and reduce your stress! For more information on our comprehensive property management services, reach out to us today!