Being a landlord is fantastic, so long as you know what you’re walking into. And trust us—it’s way more than getting a check in the mailbox every month (although that is one of the main perks!).
If you’re thinking about adding “landlord” to your resume, go in with your eyes wide open with these three tips:
1. While the kind and friendly tenants are easy to work with, “kind and friendly” doesn’t always pay the rent. Run thorough background checks on potential tenants by calling references, checking credit scores, and reviewing finances. Make this a non-negotiable no matter how friendly they appear.
2. Build up enough savings to comfortably cover your obligations without tenants for a month or two. Why? Because tenants won’t pay on time or you’ll have gaps as old tenants move out and new tenants move in.
3. Talk with a property management company and consider using their services to facilitate the lease and collect payments. Most charge a monthly fee of between 8% – 12% of the monthly rent collected. So if the rent is $1,200 monthly, that’s about $120 for someone else to handle it all. Totally. Worth. It.
With Nashville showing no signs of stopping being a major destination for those relocating and looking for investment opportunities, owning a rental property could be a very lucrative opportunity. If you’re considering buying a property to rent out in the Greater Nashville area, please reach out! We’d love to help you navigate the process with confidence.
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