Anyone who has ever thought about becoming a landlord in Litchfield has probably been attracted by its distinct advantages as an investment. Owning a property that appreciates in value at the same time it generates cash flow is a hands-on investment with obvious appeal. Yet that same “hands-on” factor can cause second thoughts: the very phrase “becoming a landlord” can inhibit busy would-be Litchfield investors who aren’t eager to enroll in a second or third career.
In reality, becoming one of Litchfield’s next landlords is considerably less daunting than it might appear. The “Forbes Real Estate Council” recently offered some choice observations on that score.
The Council is an assembly of seasoned high-end professionals whose commentaries appear on the heavily trafficked Forbes site. Their ideas frequently make good reading—especially when they manage to distill million-dollar wisdom down into a few major guiding principles. For Litchfield investors grappling with the idea of becoming a landlord, real estate management software CEO Nathan Miller recently offered his distillation of the top ways to maximize real estate investment profits. There were three:
1. Tenant screening is the Number One priority. Quality tenant background and credit screening services cost as little as $15.
2. Have your tenants pay rent online.
3. Require standard routine maintenance be performed by a licensed professional (or DIY if you are qualified)—don’t delegate to tenants.
For Litchfield landlords, following these simple practices are actually methods for avoiding the most common cash flow siphons.
The first rule tends to minimize vacancies and deadbeat tenants.
The second guideline is derived from proven statistics that show online payers are more punctual with their payments—and less likely to resent the emotional toll extracted by writing out those big checks by hand.
The third capitalizes on basic human nature. Even the best tenants can “forget to change the air filters or clean out the dryer trap”—or any number of other routine tasks that homeowners know will prevent expensive breakdowns.
Becoming a successful Litchfield landlord may not be quite as simple as just following Miller’s rules—but the three do embody the kind of cut-to-the-chase mindset that seems to go with profitability in any business endeavor. And right now, Litchfield’s opportunities are here and waiting—call me for a look!
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