Being a landlord is not a continuous plain thing to be done. You have the chance to do it properly as it remains a good form of investment for most entrepreneurs. High rents and additional favorable deals are tempting many people to become landlords.

There is a lot of ways on how to become a profitable landlord and we’ll discuss some of them here.

The first decision to make is your target market. In other words – who is your tenant? Is it a young person, a single city employee, family or student? In fact all of them has their own benefits so you have to choose the best possibility from the alternatives.

The bitter truth is that rents sometimes can’t cover your monthly installment thus you have to make the right choice from the beginning of your investment. Despite of the lower rental rates, the rates that you will offer to your tenants must somehow have sense in term of property values and interest rates. Keep in mind that not all rental property is residential as you can find a ton of investors making money from renting office and industrial house to respective tenants.

You don’t have to acquire 100 units to start make money. You can start your investment with a unit of apartment of 1-storey terrace house. In fact it is much safer to work with a property for long term rather than trying the “buy and flip” schemes as the real beauty of rental investment is choosing and implementing the right step on the right time.

Rental Income Money Flow

Of course – all of us want to make positive flow and there’s not an impossible matter to make it happens.

Determine the possible amount of rent that you will receive. You can begin by determining how many properties that you would like to rent. Check local listings for properties to get an ideal set of alternatives on what and which property that you want to buy and include in your rental investment.

Don’t count your possible rental income for 12 months per year. Although your property has high demand, transition between tenants can take 1-2 months (or more) plus the rental rates might vary between different types of property and neighborhood areas.

Subtract your property expenses as your rental income can’t the pure profit of your investment. Include your projected property taxes, mortgage payments and installments (if any), insurance expenses, utilities and maintenance fees. Maintenance fees can be particularly high if your home is under the management of particular committee or if you have to do a lot of repair for your property. Subtract these elements to get your projected profit.

Here are some of the simple advices on becoming a profitable landlord:

  • Know your legal rights and obligations as a landlord.
  • Choose the right tenant and you can save a lot per month.
  • A little lower rent might benefit you in the long run.
  • Keep a file for every tenant that you are dealing with – it’s essential to know their background.

It’s not an impossible thing to make a lot of profit by becoming a landlord. The difference is how you arrange your investment and deal with your properties and tenants.


Becoming A Profitable Landlord
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Nasrul Hanis

I work as a property negotiator as well as writing articles, tips and advice on real estate at Has a deep interest in property transactions and investment.

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