Learning how to be a professional landlord in Nashville, TN means understanding that you must treat your rental property as a business, not a hobby. A business requires financial stability and consistent policies in order to be successful.
Think about whether you can afford to have a vacant property. During slow market periods, you may have several months where there is no tenant in place, paying rent. You will still need to cover the mortgage and other expenses associated with that property.
Water heaters will need to be replaced, emergency repairs will be required and you’ll need to plan for long term costs such as new roofs and appliances. It’s a good idea to have a financial reserve in place to cover these expenses. If you put a little money aside every time you collect a rental payment, spending thousands of dollars on a new roof will not seem so overwhelming. You can only patch a leak in the roof so many times. There will be new carpet to buy, fresh coats of paint and updated appliances to install. Maintenance issues need to be addressed and you must have the money available to take care of them.
Meeting Mortgage Obligations
Many landlords have mortgages on their investment properties, and they use the rental income to cover that mortgage payment. This is something you can do, but it’s always a better idea and a safer investment when the house is paid for. There’s a lot of stress associated with having to pay for the home when there is no rent coming in due to vacancies or repairs. It’s not a good idea to put a tenant in a home when a landlord does not have the financial stability necessary to pay for and maintain the property.
To keep your rental property running more like a business, you’ll need to achieve emotional distance. Working with a professional property manager can help. Property management companies help you plan for the expenses that will come up. You’ll know you’re getting an expert opinion, and if your property manager tells you there’s a repair that costs hundreds or even thousands of dollars, you’ll know it’s something you need to handle.
Contact Apex Ventures if you have any questions about becoming a landlord and how to run your rental property as a business.