Investing in real estate and renting it out to tenants is an excellent way to generate income. Once you have tenants, the cash flow will largely become passive, meaning you won’t have to do many extraneous tasks outside of maintaining the property. Yet, there are a few steps to follow to get there first. Find out what you can do to become a landlord below.

How to Become a Landlord

1. Understand Local Rental Laws

While there are federal landlord-tenant laws to learn, you’ll also need to familiarize yourself with state or local provisions. These legal requirements protect renters from discrimination, and many provisions also protect your assets as well. A quick web search should give you a rundown of laws pertaining to tenant and landlord rights, such as security deposits, required notice, and so forth.

2. Invest in the Right Real Estate

If you don’t already have a property to rent out, the next step is to acquire real estate. You’ll need to consider key factors such as location, cost, and taxes to make sure you can make an income that’s worth any resources you put into the property. In many cases, it’s best to start out with a small property first, and then expand if you find yourself enjoying the landlord experience.

3. Select Trustworthy Tenants

Tenant selection is an important process. After all, you’ll want to be sure that your renters will make their payment on time and treat the property with respect. Perform a background and credit check to make an informed decision, and hold an in-person interview with the prospective tenants to help finalize your choice.

4. Establish a Lease

A lease is a contract you’ll enter into with your tenant, which protects both your rights and theirs. While there are standard forms that you can download from the internet, you’ll want to customize the document according to your precise needs. For example, you may need to alter the amount of the security deposit, modify the pet policy, and cite the number of days or months of notice you need before the tenant moves out.

5. Keep the Property Maintained

Finally, you’ll need to make sure the property is kept in optimal shape so that it retains its value. Not only should you determine a timeline for routine maintenance, but you should also keep in mind that repairs to plumbing fixtures, appliances, and other features included in the property may also need to be made from time to time.

If you’re thinking about becoming a landlord in the Statesboro, GA, area, turn to Eagle Realty & Investment. For over 20 years, this team of leasing consultants has specialized in helping clients navigate real estate investments with ease. Send them a message online or call (912) 871-0333 to speak with a team member.