Real estate investment is one of the most common and profitable ways to build wealth. However, if you plan to manage your own properties, it’s important to understand the full scope of what’s involved with being a landlord. From tenant management to accounting and legal compliance, there are many things you need to take into account before diving in to building your real estate empire.
Whether you own a single-family home, condo or multi-family property, being a landlord is like running a small business. There are customers to serve, accounting and taxes to deal with and plenty of day-to-day tasks. If you’re not ready for the responsibility of managing your own properties, consider hiring a property manager. Managing property requires a strong work ethic and a firm understanding of New York’s real estate laws. Staying up to date on market trends and rental rates is crucial, as are establishing channels for communication with tenants.
It’s also helpful to create templates for each type of transaction, such as a rent payment or maintenance request form. This saves time and makes it easier for tenants to communicate with you. It’s also a good idea to keep a copy of all documentation at all times, in case something is lost or destroyed. Keeping digital and paper copies is recommended so that you’ll always have access to your records.
Finally, if you’re planning on being a landlord, make sure you set aside enough money to cover expenses while your property isn’t earning income. If you don’t, you may need to rely on another source of revenue, which could impact your long-term financial goals. how to manage property