Being a landlord can be a very lucrative and personally rewarding career path. Many take pride in giving people nice, high quality rentals to call home. Additionally, you can make a pretty penny, especially if you rent out in areas with a high cost of living, such as the Bay Area in Northern California.
Whether you’re looking to make being a landlord your full time career, or you just need a little extra cash each month, there are some important considerations you should make before you take the plunge. Read on to learn about everything you should know before becoming a landlord in Northern California.
How much you make may depend on how much you have
When you’re first starting off renting out properties, you’ll need some amount of capital. How much you want to invest directly affects how much you make each month. For instance, let’s say you have just one property. If you’re looking to rent it out and make more than what you pay on its mortgage each month, you may only be able to expect between $2,400 and $4,800 a year.
Of course, this amount would change if you had a mortgage that was paid off completely, or if you own multiple properties. To own multiple properties, you have to start off with far more capital. If you’re up to the challenge of raising capital before going all in on landlording, your efforts could pay off tremendously enough for that to be your sole source of income.
It isn’t all about San Francisco and Sonoma
When people think about Northern California as a region, many think about the Bay Area, like San Francisco and the wine country of Sonoma. However, those are not the only places in Northern California where being a landlord could pay off.
Sacramento, for instance, is a lovely area with plenty of things to do such as visiting zoos, museums, and parks. They even have their own NBA team, which draws in plenty of fans (and thus, potential renters). Sacramento also has an overall cost of living that is higher than the US average, which means you can charge top dollar for a nice place to live. However, it is lower than the California average, which may attract renters from nearby, more expensive areas.
If you find that your housing investments in Sacramento are not paying off, you can always sell your property fast by Googling “we buy homes in Sacramento” for local buyers. They will give you a deal that allows you to get out of your property owning situation so you can continue to make money.
Stay organized to stay successful
It’s no use being a great landlord if you do not have the tools and skills to maintain that success. Consider investing in software from companies like turbotenant.com, which allows you to unify all of your complex paperwork and rental information. This platform can help you keep rental applications, background checks, and other tenant paperwork all in one place so nothing gets lost.
That will be a huge help to you and an even bigger help to your tenants should they need anything. If they are satisfied with your service, they will be more likely to recommend you and your properties to their friends and network. That word of mouth marketing will help you grow your landlording empire, which will help you turn larger profits. Staying consistent as a landlord is key if you want to grow in the business.