This document discusses 5 clues that indicate if someone is cut out to be a landlord: 1. Legal issues with tenants can cause headaches, so it's important to understand fair housing and rental laws. Hiring professional property management can avoid legal troubles. 2. Tenants will cause frustrations with property damage, complaints, and inconvenient calls. Having a clearly written lease outlining rules and payments can prevent disputes. 3. Rental properties require ongoing maintenance, repairs, and adjusting rents based on market rates. Budgeting and cash reserves are needed to handle financial responsibilities. 4. Regular maintenance is needed to prevent deterioration, and budgets should include replacing major systems over time to avoid surprise costs. 5. For those

1. 5 Clues to See if You Are Cut Out to be a Landlord?
It’s easy to get someone excited about investing in rental properties. After all, you get to bank
monthly cash flow, enjoy some tax advantages, and you’ll probably end up with appreciated
value when you sell. With all of these good points, there is one facet of rental property
management that can turn all of your joy into headaches if you aren’t prepared. It’s those pesky
tenant relationships.
1. Legal Lookout
You won’t necessarily experience many legal hassles if you’re properly prepared. This means
using state-legal forms for your rent applications and leases; blessed by an attorney is even
better. If you’re advertising your rental home or unit, you’ll want to be careful to stay on the
right side of fair housing law.
Even your interview should be carefully planned and scripted so as to avoid asking questions that
can get you into trouble. It’s unlikely that you’ll be on the radar for a sting, but be aware that
there are federal and local agencies sending in ringers to apply for rental units to check for
violations. There are also people who are looking for a reason to sue, as it’s usually going to be
resolved with the landlord settling to avoid legal costs. Learn the law in your state and abide by
it completely. If these kind of details are annoying to you, hire professional management or
consider another investment strategy.
2. People Pains
Tenants are people, and they come in all shapes, sizes, and temperaments. If you’re a landlord
long enough, you’ll experience many frustrations, from property damage to complaints about
small things you can’t control. They’ll want to complain when they’re not happy, not
necessarily when you find it convenient. Late evening calls about plumbing issues are part of the
business.
One really wise thing to do relates back to the legal issues. Have a very clearly-worded lease
with rules for behavior and deadlines for rent payment explained in detail. Have them initial
those areas to be sure they’ve read them. One of the biggest reasons for landlord-tenant disputes
is that there are misunderstandings about rules and payments.
3. Financial Foibles
Stuff happens and things change. You can’t just do the due diligence when you first buy a
property and get the first tenant then sit back and relax. Every time a lease is coming up for
renewal you’ll want to get a new market analysis to decide whether it’s time to raise the rent or
not. You may even have to consider cutting a deal to keep a good tenant, but you can’t make the
right decision if you don’t know the current market and competition.

2. It’s not just about the rent, as you really need to do regular big picture market research to know
when you may need to think about selling. Neighborhoods change, employers move out,
demographics change, and you need to stay on top of the market. Even if rents are holding in the
short term, you may want to sell if you anticipate future rent pressure or falling home values.
4. Maintenance Matters
Rental property ownership is a long term deal, and houses need regular maintenance and repairs.
If you let the home deteriorate, tenants will begin to give it little respect and the situation will
worsen quickly. Holding a property for five, ten, or more years will require investment in major
systems like heating and air conditioning. You should budget for this in your rents and set aside
a cash account for these improvements. Surprise major repairs take the fun out of landlording.
5. Hiring Help
While it may not be financially feasible for an investor holding a single or couple of properties,
professional management can work for you. In some cases you can use a professional
management company for around 10% or less of rents collected. If you have the ability to add
that into your rent in your market area, all of these landlord issues go away and you can play
golf.
Rental property is one of the best investment strategies out there. Tax advantages, monthly cash
flow, appreciating value, and inflation resistance all combine to make it very attractive. Just
enter the game knowing what to expect or how to avoid what you don’t like about landlording.