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New landlords inevitably fail to enforce their lease terms properly.<\/strong> They\u2019ve been a renter for much of their lives, they\u2019ve fallen for all those cultural stereotypes about mean landlords, so they buckle at the first sob story they hear from a tenant late on their rent.<\/p>\n Hear me well: people push boundaries. It\u2019s human nature.<\/strong> Tenants will try and push your boundaries to see what you\u2019ll let them get away with. If they can pay their rent two weeks late with no consequences, but their phone service stops working if they fail to pay on time, which bill do you think they\u2019ll prioritize?<\/p>\n On the first of the month, send an automated email reminder. On the day before the rent officially becomes late, send a text or manual email reminding them that they\u2019ll get hit with a late rent fee if you don\u2019t receive the rent today.<\/strong><\/p>\n When the rent officially becomes late, send an official eviction warning notice required by your state\u2019s laws. Don\u2019t freak out about it: they\u2019ll still have ample time to bring the rent current. The eviction notice doesn\u2019t say \u201cget out\u201d \u2014 it says \u201ccure the violation or else I\u2019ll file in rent court in X days.\u201d You need to do this as soon as the courtesy period ends.<\/strong><\/p>\n Don\u2019t feel comfortable doing that like clockwork, every time? Don\u2019t become a landlord. Invest in passive real estate syndications instead, or at the very least, hire a property manager.<\/strong><\/p>\n \u00a0<\/p>\n If you\u2019re like most people, you\u2019re busy.<\/strong> Do you really want to listen to tenant sob stories or field phone calls at 2 am when your renter clogs the toilet?<\/p>\n Consider delegating the day-to-day management to a property manager.<\/strong> Just beware that you\u2019ll then have to manage the manager.<\/p>\n You\u2019ll need to double check their tenant screening and selection, confirm how often they inspect the property, and make sure they\u2019re serving eviction notices the day the rent officially becomes late.<\/p>\n A good property management company is worth their weight in gold.<\/strong> Unfortunately, the industry is rife with shoddy, unprofessional property managers.<\/p>\n Whether to hire a property manager<\/a> isn\u2019t always an easy decision. I\u2019ve known real estate investors who actually hire the property manager first, before deciding to invest in a certain real estate market. Because without good property management, your returns will suffer, and an otherwise good property might lose money.<\/strong><\/p>\n \u00a0<\/p>\n You now know how to become a landlord. But should you become a landlord?<\/p>\n Weigh the following pros and cons of becoming a landlord before committing your time and money.<\/p>\n \u00a0<\/p>\n I spent many years as a landlord, and it has a lot going for it. Consider the following upsides to owning rental property:<\/p>\n \u00a0<\/p>\n Rental properties aren\u2019t all fun and games. There\u2019s a reason I sold off my rental properties, after all.<\/p>\n Beware of the following drawbacks before you become a landlord.<\/p>\n \u00a0<\/p>\n Still have a few questions about how to become a landlord?<\/p>\n Hopefully these will get you squared away.<\/p>\n \u00a0<\/p>\n It depends. If you have a passion for real estate and want to start a real estate side hustle as an investor and landlord, then absolutely.<\/strong> But if you just want to diversify your investment portfolio, there are much easier ways to do so. You can earn just as much (or more) passive income and appreciation from real estate syndications, or even real estate crowdfunding platforms, without the headaches.<\/p>\n \u00a0<\/p>\n12. Decide Whether to Hire a Property Manager<\/h3>\n
Pros & Cons of Becoming a Landlord<\/h2>\n
Pros of Being a Landlord<\/h3>\n
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Cons of Being a Landlord<\/h3>\n
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FAQs About Becoming a Landlord<\/h2>\n
Is becoming a landlord worth it?<\/h4>\n
Can you buy a rental property with no money down?<\/h4>\n