Setting Goals
Every business needs good business planning. Think strategically before you get started in landlording. What do you have to do immediately? What has to be accomplished in the first year? And where would you like to be five years down the road? Put it down on paper.
Identify and prioritize your goals. For instance, which of the following goals are factors in your decision to become a landlord, and how important are they to you?
Receiving extra income from the monthly yield off your property
Building up equity to purchase the home of your dreams
Making a long-term investment in the current rental property
Using the equity from your first duplex to buy more rental property
Building up your business so you can eventually be a full-time landlord
Think about the rental market you would like to target. Decide who your ideal tenants would be — for instance, students, young professionals, small families, Section 8 tenants, or empty nesters — and how you can attract them. You can't predict who will come to your door, but the amenities you offer, the apartment's location, where you choose to advertise your vacancy, and the cost of rent will have an effect on who decides to sign the lease. Think also about your long-term goals — do you eventually want to have better tenants? What will it take to get them?
How can I learn more about landlording in my area?
Listen to landlords and real estate professionals. They'll have tips that come from long experience. Go to seminars and workshops for landlords and join a professional association. Every community has its own unique personality. You'll learn what works with tenants in your area and what doesn't.
Write down three short-term goals. Then write down a half-dozen or so long-term goals. Look at them from time to time to remind yourself what you hope to accomplish and to find out whether you've achieved any of them. If you haven't, get yourself back on track.
