It can be hard to have a limited income, especially if you have aspirations of moving beyond your station in life. Climbing the ladder of wealth can be an important step in you breaking the paycheck-to-paycheck cycle, though it can be difficult if you don’t have the right career to help you do so. Making the switch into property management can be an excellent way to increase your income with a fulfilling job that helps others. For example, in Canada, property managers make $57,000 a year on average, with similar figures in the United States. If you feel like you don’t have enough money to become a landlord, read on to see how you can change your situation and get ahead in life.
Get a loan
Like many business ventures, if you don’t have the required capital to start your property management business, it’s important to find funding from somewhere. Even if you’ve got a low income or bad credit, there are many places that offer smaller loans with simple application processes so that you can get the money you need to transition to being a landlord. Eastern Loans is one such option, offering Canadians payday loans to help them get funding quickly. Having enough money that you can pay a down payment on a property without sacrificing your living expenses is very important as you work to become a landlord.
Start out small
When starting any new business, it’s important to start out small. While it may be tempting to buy multiple properties to start ramping up your income, if you jump into the deep end too soon, you won’t be able to sustain your business. Similarly, it won’t do you any good to purchase a huge luxury property straight out of the gate, either. Instead, focus on a small rental that will help you learn the ins and outs of the property management trade. Dealing with tenants, collecting rent, and maintaining the property’s heating, roofing, and appliances poses a steep learning curve if you’re new to the property management game. By starting out small, you minimize your risk as you start something new, ultimately increasing your chances of finding success.
Find (and keep) good tenants
One of the biggest keys to success in the rental market is finding (and keeping) good tenants. Maintaining your relationship with your tenants relies on how well you respond to requests for repairs and if your units are priced fairly. But before you have a relationship to sustain, you’ll need to attract tenants in the first place. A good tenant is worth their weight in gold, and will provide you with reliable, monthly income year after year. There are plenty of ways to find tenants, but one simple, easy method to ensure your tenants are a good fit for you is to conduct a tenant screening. By evaluating an applicant’s credit history, criminal record, and eviction history, you can begin to form a picture about how much of a risk it would be to rent to them.
Build your business slowly
As you begin to make a profit, it’s never a bad idea to start expanding your business, but it is important that you do so slowly. Economist John Stuart Mill famously said “landlords grow rich in their sleep,” and that’s certainly true as you begin to own and rent more apartments. Scaling your business slowly is particularly vital in the world of real estate, as you don’t want to risk having all of your eggs in one basket when another recession hits. With some savvy, measured decisions, you’ll be well on your way to success.
Even if it seems like you don’t have the money to become a landlord, there are ways to make it happen. Getting a loan and starting out small is a great way to dip your toes into the world of property management, allowing you to master this business and turn a profit.