In the pursuit of additional income, becoming a landlord ranks among the top ways of earning that extra cash. The idea of a consistent stream of passive income is just too attractive and appealing to pass up. Who doesn’t want to have their property work for them? Who wants to sweat it out in the corporate grind when there is a cash cow that mints money with little effort on their end, right?
However, even as you start counting those big wads of bills from your rental income in your mind, you must be aware of the challenges that come with being a landlord. This article highlights the key challenges that come with buying houses in Miami quickly to turn them into rentals. It also highlights the key sacrifices that you have to make in order to be a successful landlord.
You Must Gain New Skills in Property Management
Becoming a landlord sounds very easy in theory: you buy a property, rent it, and collect money at the end of the month. However, there’s a little more to it and some new skills needed in order to be successful at it.
But, why? Isn’t buying houses in Miami quickly and being a landlord straightforward? You ask!
It isn’t as straightforward as you might assume because you have other key responsibilities. For starters, you must learn the keys of successful rental property ownership. You must learn the laws of the state in which you are operating in. If you are in Florida, for example, there are a lot of resources on the laws governing the landlord-tenant interactions. Should you break the law, you cannot plead ignorance to the laws, you are expected to know them.
Other skills include tenant selection, bookkeeping, accounting and marketing. Expanding your repertoire is essential to becoming a successful landlord. It will take time to get a handle on these roles but when you do, you will be on course to being a good landlord.
Tenants from Hell
Numerous instances of very complicated and at times very vicious landlord-tenant encounters have been witnessed many times in the ‘Sunshine State’. When you want to be a landlord, expect to deal with tenants from hell every once in a while. No matter how stringent and effective your vetting processes are, some of these characters will slip through the cracks.
The trick in handling these types of individuals is to be firm but diplomatic. You must master negotiating tactics in order to avoid lengthy battles that will bad for your business. If your establishment gets a reputation of problematic tenants, potential tenants will always avoid it.
Therefore, you must always be ready to deal with these types should they come up.
Are you prepared to meet new expenses before you can actually enjoy the profits? You should be, if you decide to venture into the rental property business.
Insurance is the first and foremost expense you must deal with. Its importance can be summed up into the following phrase: it is better to not need it when you have it, than to not have it when you need it.
Other expenses you have to contend with include taxes, repairs, and maintenance. Be prepared to spend money to address each of them.
If you decide to become a landlord, you must be prepared to do some work and spend some money before you start making money.
These are the three main challenges you must brace yourself for when you want to buy that house in Miami quickly and convert it to a rental.