6 Steps for Starting a Rental Property Business

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Starting a business of any kind isn’t easy. The process can be overwhelming and frustrating, and it might not generate the amount of income you’re hoping for. While becoming a landlord can increase your cash flow month-to-month, there’s a lot of planning that needs to take place before you’re able to operate a successful business. 

So, if you’re considering becoming a landlord, keep reading our comprehensive guide on how to start a rental property business. We’ve broken down the process into six simple steps to help you jumpstart your journey as a landlord and entrepreneur. 

  • Choose Your Niche

There are two main types of rental properties that you can put your time and money into: long-term properties and short-term properties. 

Long-term property rentals include single-family homes, apartment buildings, townhomes, condominiums, office buildings, malls, and more. With these types of rentals, tenants will usually stay six months or more at the property. 

In contrast, short-term rentals are typically vacation properties that include beach houses, cabins, homes in residential areas, and more. As the name implies, short-term rentals are usually leased for a limited amount of time.

  • Know the Laws

It’s essential to have a deep understanding of both federal and state laws regarding your property and tenants. The last thing you want to do is break laws that can result in hefty fines and even a lawsuit. This is especially important if running an eviction background check to screen potential tenants. If you’re planning on conducting a background check, make sure that you follow all of the regulations outlined by the government.  

  • Find a Great Rental

There are several rentals to choose from. However, some will cost you more than others. For example, while running a rental business for vacation homes can be a lucrative investment, you’ll also have to provide constant maintenance whenever a renter leaves. This could be every day or once a week. 

You also want to pick a rental that’s situated in a profitable location and that won’t cost too much to purchase. If you don’t have the funds to buy a home, you can also rent the property you currently own to start. 

  • Charge a Competitive Rent

You’ll need to conduct a lot of research before setting the rent of your property. You don’t want the rent to be too high or too low compared to similar property listings in the area. Instead, you want your property’s rent to closely align with nearby homes, apartments, or condos in the community. 

  • Market Your Rental

As soon as you determine the financial details of your property, you’ll want to start marketing the unit on rental sites. This increases your applicant pool, allowing you to be more selective about the tenants you let into the home. You can also market your rental in newspapers, advertisement websites, and even social media. 

  • Hire a Property Manager

While this step is entirely optional, hiring a property manager can free up your time and keep your tenants happy. Without a property manager, you may have to respond to tenant emergencies at random hours of the night or day. This can make it difficult for you to have a life outside of your rental property business and can get overwhelming if you own more than one property. 

The Bottom Line

Starting a rental property business is no easy feat, so if you’re considering becoming a landlord, you should be determined to put in a lot of time and effort. Not planning carefully can cause you to lose money on your investment instead of earning a profit. Use the tips above to get a solid start in the rental industry.

About Author

LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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Rick Sunchez
Rick Sunchez
1 month ago

Have you ever dreamed? I always had this to open my own company, but I ran into a problem, I had few sales. Asked a friend for advice, he advised me one company in singapore, see it here. They are redirecting customers to me now. My sales have gone up and now I have all my problems solved.

Ethan
Ethan
1 month ago

Therefore, before launching, it is extremely important to identify the needs of customers, plan advertising and highlight the desired characteristics of the product at each stage of the sales funnel. This way, you can more effectively distribute your advertising budget, significantly increase the volume of quality hits and sales, if you direct more marketing efforts to promising audience segments. Learn more about attracting customers to your business.

Satendra
29 days ago

I have a property which I was thinking to rent out. Thanks for sharing such information. I will definitely consider these points.

Honolulu
16 days ago

It takes a lot of work to start any business really, but I think that it’s well worth it, and I’m glad there’s articles encouraging people to do it all across the Web. I remember when I started my first business when I was 14, it was the scariest thing in the world at the time, but it paid off. I’m looking to move more into real estate, and this article was useful

Makurra
Makurra
11 days ago

Hello everyone. Spreadsheets have a place in almost any workflow. Perhaps you need to create a business budget, but you are not sure how to structure it. Or maybe you just need some room for simple calculations, etc. Either way, a spreadsheet might be the right tool for various jobs, then use https://freemiumtemplates.com/ to find the templates you want. So good luck!