The average salary for a landlord in Minnesota is almost $95,000 a year. Of course, it will be many years before you start making that kind of money.
You'll need to invest in the right properties and implement strategies such as rental analysis to build your real estate business. That's why many landlords seek out the help of a property management company.
We have a few tips that will help you get through your first few years as a new landlord. Continue reading to learn more.
Treat It Like a Business
Rule number one when you become a landlord is to treat it like a real estate business. That means maintaining a professional persona with your tenants and staying on top of your finances with proper record-keeping practices.
You'll also need to schedule inspections, stay up to date with real estate laws and tenant rights in Minnesota, collect rent, perform eviction proceedings, and keep up with regular maintenance. It can be a lot of work for one person to take on by themselves. That's why many landlords look for a property management company.
Create an Online Listing
Potential tenants won't know that you have a rental property available unless you advertise it. Since most people look for occupancies while scrolling through their phones, posting an online listing is the way to go.
Potential residents will want to know where your property is located, how many bathrooms and bedrooms it has, how many if any amenities you offer, and the price you charge per month.
Be sure to include plenty of pictures with the description. This will allow people to visualize themselves in the space.
Screen All Tenants
Before handing someone the keys to your rental property, be sure to do a thorough screening. That means performing a full background and credit check.
You should also ask potential occupants about their income and check for any past evictions.
Perform a Rental Analysis
One of the hardest parts of being a new landlord is pricing your property. Most do the math by performing a rental analysis.
To do a rental analysis, you're going to research the current property market and compare it to how the rentals in your area are doing. This will give you the insight you need to decide on a fair price to charge your tenants.
At the end of the year, you can perform another rental analysis to decide if you should increase your tenant's rent. This time, compare the property market with how your own rental is doing.
Hire a Property Manager
As stated above, many landlords hire a property manager to delegate some of the tasks needed to run a rental property.
Using their expertise, they can market your property, take care of tenant issues, schedule maintenance, collect rent, and negotiate the lease and rental agreement.
Find Success as a Landlord
Becoming a landlord can be profitable, but it requires a great deal of responsibility. You'll need to perform a rental analysis, screen your tenants, and market your vacancy with a killer online listing.
It can be a lot for one person to juggle. If you find yourself overwhelmed just thinking about it, PMI Lakeshore can help. Go here to schedule a consultation.
