Saving for a baby? Got a baby but want to save up for vacation or private school or some other luxury? If you have more than one property or space in your home that you can convert to an apartment, you might want to consider leasing it out and using the income to fund your dreams of parenthood or a pet project.
Be a landlord.
Calling someone who leases out property a landlord is an oversimplification of their responsibilities. A landlord is the most fundamental of entrepreneurs.
Purchasing property and renting it out for others to use or live in can yield serious profits if done right. The key is to think like an opportunist and not a just landowner.
A few principles are usually associated with other fields of entrepreneurship, but they are equally relevant to land ownership. If you haven’t already purchased a property, then the most important thing to think about is location. This will determine who your tenants are and how much you can charge for rent. Also, use technology to your benefit (it’s your friend). In this increasingly digital world, those who use technology to enhance their business will come out on top. In addition, you want to consider who your target consumer is, and design your property to attract them. Make your property jump out at prospective tenants and say, “Welcome home!” Continue reading to see how to flourish as a landlord in the 21st century.
Location, location, location!
As cliche as it may sound (cliches only become cliches because they’re true), location is the key to success for an entrepreneur, especially a landlord. If you purchase a home in a college community, then you will likely attract college students and repel families — especially those with babies. If you get property near a shopping district or downtown area, then you will likely attract young professionals and families just starting out.
When you are shopping around for the perfect rental property, you have to consider a lot of factors. What kind of attractions and conveniences are within a reasonable distance of the home? What are the schools in the area like? Is the neighborhood safe? How much will it cost to make this home ready to lease out? While only legwork and research can provide you with the answers to these questions, at least you know which ones to ask now!
Use technology to your benefit
You can’t duck the facts. That long-ago prophesied day — when “everything will be done on computers” — has arrived. The good news is that technology has come to make life (and business) more convenient. The way you use these new developments could go a long way towards determining your success as an entrepreneur.
As a landlord, the internet could be your best friend. You could use social media and online directories to advertise your property to prospective lessees as well as find people to service your property. Software bundles give you quick access to anything from a free rental application to credit and background checks. Use these tools to thoroughly screen and analyze potential renters before handing them the keys to the kingdom. As you see, technology can help save you a lot of time, money, and headaches!
Make your property the main attraction
One key thing to remember as a landlord is that you are in competition with every other landlord in your area. You cannot afford to lose your competitive edge. You want your house to make potential tenants wish they had brought their packed moving truck with them when they first lay eyes on it. You need to make your property desirable.
Take into account what kind of tenants you are trying to attract. If you are trying to attract growing or professional families, and you have a spare room, market it as an office or playroom. If you’re trying to attract young adults and newlyweds, then you should turn extra rooms into entertainment spaces. Modernize the kitchen with black and chrome appliances and accents. Turn your property into the place to be.
If you have the patience and will, being a landlord can be a rewarding endeavor. Many people choose to let property management firms handle those responsibilities for them, but you can be much more profitable on your own. There is no one-size-fits-all solution, so ultimately, you will have to decide what’s best for you.
Here’s to lording over land in the 21st century!
