You’ve found the perfect property, crunched the numbers, and now the keys are in your hand. So, what’s next? If your strategy is buy and hold, your next role is becoming a landlord. It’s a big responsibility — but with the right approach, it’s also incredibly rewarding. A strong landlord-tenant relationship is the foundation of a successful rental business.
Here’s your playbook to set yourself up for success:
Screen Tenants Thoroughly
This is hands down the most important step. A bad tenant can cost you serious money in lost rent, legal fees, and property damage. Always run credit checks, criminal background checks, and verify employment and rental history. Talking to previous landlords will give you a clearer picture of their reliability.
Draft a Strong Lease Agreement
Your lease is your best friend. It should clearly state rent amount, due dates, late fees, security deposits, and all rules and regulations. Consulting a real estate attorney is a smart move to ensure compliance with local and state laws.
Set the Right Rent
Do your homework on the local market. You want rent that’s competitive enough to attract quality tenants, but also high enough to cover expenses and create positive cash flow. Tools like Rentometer can be a great help.
Get Your Systems in Place
Will you handle maintenance requests, rent collection, and tenant communication yourself? Or hire a property manager? For new investors, a good property manager can be worth their weight in gold—they take care of day-to-day hassles and free you to focus on growing your portfolio.
Stay Up to Date on Landlord-Tenant Laws
Rental laws can change and vary by location. Staying informed helps you avoid legal trouble and ensures you treat tenants fairly and legally.
Being a great landlord means treating your rental like the business it is. When you do, you build a win-win relationship with tenants and protect your investment for years to come.
The path to becoming a successful landlord takes patience, knowledge, and good systems. Nail these basics, and you’ll build a rental business that’s profitable and sustainable.
Ready to get expert tips on managing your first tenants? Want some experienced eyes on your lease and processes? Reach out anytime — I’m here to help you build a landlord business you can be proud of.
