5 Things To Consider If You Want To Be A Landlord
How do you know if you’re ready to be a landlord? This is a really good question. Are you thinking about making your home a rental? Are you thinking of buying a rental this year? We have added 5 things to consider if you want to be a landlord.
This is definitely been a hot topic these days because of the increased market values, coupled with the cost of living in Denver. In deciding if this is a good option for you there are some important areas to consider.
Here are 5 things to consider if you want to be a landlord:
- What happens when the tenant calls with an issue? (Or will you use property management)?
- Are you ready for the wear and tear on the property?
- Do you have an operating account for unforeseen expenses?
- Are you ready to invest? (Over time you will have to reinvest in your property actively to keep its value up) Is cash flow your only reason for wanting to have an investment property? If it is, you need to think this through because rents could subside in growth in the future and if it does are you ok with that?
- What is your exit strategy?
If this is your first go at being a landlord, and even if it is not, become familiar with landlord/tenant rights. The State of Colorado has information, you should check it out– And you may want to align yourself with a real estate attorney or get to know who is out there in Denver doing this. But make sure you have a good lease, and of course, treat your tenants with respect.
All of these are very important questions to be asking yourself and working through them. If you are confident and have prepared yourself well then it may be time to discuss. For a little more insight check out this video where Ray talks more about this. So how do you know if you are ready to be a landlord? Call us with any questions~ 303-779-0591