Rental Real Estate TipsThese rental real estate tips and considerations are meant as a starting point. Obviously you will have your own learning curve, which will depend on your own situation. I believe that if you took these tips seriously and faithfully followed them, your chances of success will increase greatly. It starts with your expectations. You call this passive?!Some people will scoff at my calling rental real estate income as "passive income". They will tell you all kinds of horror stories about people who had to deal with the tenants from hell. Or renting out to students who trashed the place completely.All this can certainly happen to you. At the same time also know that the successful investors and landlords -- people just like you and me who are getting steady streams of income from rental properties -- do not go around advertising the fact! A profitable business that works and makes you steady money does not make news. It's the bad & sensational news that gets the crowd going. Make sure you deal with this with a rational mind. Tenants as CustomersThe most important advice I was given about managing tenants:Keep the lines of communication open. Make sure you listen to their issues and concerns and take prompt action. Do not take your tenants for granted.At the end of the day, this is a business, and all the principles of good business management apply to it. Your tenants are your customers. Treat them like you would in any other business and they will treat you well. Most Important TipHere is the rental real estate tip that will make the difference between success and failure: Focus on building a network.Rental real estate is a team sport. Your team needs a realtor who specializes in rental real estate, a property manager, an insurance agent, a handyman, a banker (or a mortgage broker). And you need to be able to trust them, which takes some time to develop. Attending the local landlords' association is a great first step you can take. I started attending the monthly meeting of Worcester Property Owners Association (WPOA) and that was the best thing I did. Find your local association and start attending their meetings. A Few Do's and Don'tsHere are a few other thoughts to keep in mind as you think about rental real estate:
The Ultimate Rental Real Estate TipI have saved the best rental real estate tip for last:TAKE ACTION! Need I say more? Here is a quote from W.H. Murray’s The Scottish Himalayan Expedition (1951), that inspires me: Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth, the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, then providence moves too. A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents, meetings and material assistance, which no man would have dreamt would have come his way. Carpe diem!
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