Now you’re in the people business, not the property business!
The Treehouse Numbers:
Pre-purchase Estimated Rent: $1500
Current Rent: $1800
READ | Don’t reinvent the wheel. The Book on Managing Rental Properties by Brandon and Heather Turner is a phenomenal first step.
Determine Rent | Determine the rent before you purchase the property by looking at comparable props. Then do a quick re-check when you’re rent-ready.
Preventive Inspection | Run every faucet, open every cabinet, turn on every light. If you don’t, the tenant will, & you’ll be back there for weeks doing repairs. This is part of providing awesome customer service, and you’ll have great documentation (and pictures) to reference when you do your move out inspection.
Screening | Check with fair housing and local laws about what you can and cannot ask (e.g. in my state you cannot ask about source of income, eviction history, drug possession charges, etc).
Whatever your requirements are, set a standard and stick to it. A good rule of thumb is if the answer to any of your screening questions involves a ‘story’… run.
Leasing / Forms | Consult with local landlord groups for a template and have your lease reviewed by a local attorney. This is one of those things that doesn’t matter until it REALLY matters! Housing courts will not rule in your favor if your lease is faulty.
Management | Management lasts long after the closing docs are filed, or the contractors pack up their tools. This is the the long term protection of your investment. If you’re doing this yourself, make sure you’ve done your research and remember it's customer service. Good relationships pay dividends!