Episode 056 - Rental Real Estate secrets to success
Myles gives you a ton of information in this episode from his 20+ years of experience in successful landlording. Rental real estate is a key part of any smart income portfolio and it is hard to be financially sustainable without it. Know the tricks of the professionals which are laid out here for you to digest. Whether you are a landlord, thinking of becoming one, or just wanting to know what life looks like as a landlord, this show is for you.
I got it wrong for about the first four rental properties I bought back in the 1990s and early 2000s. It wasn’t until I understood the things that I should have researched first, that I realized my mistakes. So here’s what you need to know to be successful earlier with rental properties than I was.
0. A landlord is making a deal with the devil every time they buy a rental property
- The city & state government
- Property tax
- Sales tax
- Licensing costs
1. Picking the right region to invest in rental property:
- What drives rent pricing?
- Pro-business areas
- Are tenants coming or going?
- Exodus vs. influx
- UHaul statistics
- Get to know local legislators and their attitude to capitalism
- Avoid “socialist” states
- Slip & Fall laws
- Squatters rights
- Lead time from late pay to marshall hauling out the tenant
- Ability to evict based on rental application fraud
- Ability to evict based on unknown occupants
- Ability to evict based on undocumented pets
- Length of time the landlord must hold personal property for evicted tenants
- How long do you have to college on judgments?
- Statistics on cases won by landlord vs. tenants
- How does the state handle evictions? Robo-eviction courts?
2. Landlord rights
- Application process
- Credit, criminal and eviction history checks
3. How to attract new tenants?
- Local signs
- Build a database of interested parties
- Referrals from other tenants
4. Affordable attorneys & process servers
5. Quality property management