If you own any type of real estate these days, from stocks to physical tangible assets, you have one major advantage that you want to retain as an investor, consumer, and owner for as long as possible. With the S&P 500 down about 20% and real estate up 25% year-over-year, you are currently beating the market in a big way.
As a newly established owner for over 2 years now, I can confidently say that it still feels like a full time job, but the market has made it much easier and more useful for me to take even better care of my properties now that the housing market is booming.
Naturally, as a woman, I tend to put the needs of others before my own, which leads me to be a control freak when it comes to my prized real estate.
After all, it is one of the few types of non-fungible assets that is truly STABLE and cannot be replaced.
At 21 what I can also say is that owning and dealing with tenants from 19 for my own housing the time one starts college tries to get as far away as possible from home and tries to juggle several part-time jobs. , managing people beyond yourself is not everyone’s cup of tea.
Is there passive income involved? Eventually – if you have the delayed attention span for it these days, which my generation is sorely lacking.
– Any pet: most favorably puppies
– Overnight child care
-Buy a repairman and negotiate, manipulate and deal with everyone involved. It won’t be pretty and requires luxury patience and coordination
-Buy a summer house and 90% chance you’ll end up working more than enjoying it 🙂
These should be decent ways to see if you are qualified to be an owner/owner. It’s the people, not the place that need to be manipulated.
Once you get to this stage, you’ll not only appreciate any stable, scared tenant that comes your way, you’ll be grateful for all the sweat and tears of finally finding a paid one. As the saying goes, if you fail to prepare, prepare to fail and with tenants, it’s make or break it.
Since background checks, credit history, degrees, family history, references, etc. don’t paint the whole picture, especially what you do when nobody’s looking and how your divorce is going, I’ve found even the most studious, accomplished tenants with prestige background checks can still lack good sense and want to take advantage of you. Econ 101 will help you in this tight housing market, but not when dealing with a foreigner.
The key is to keep the relationship professional at all times and never too personal. Try not to imply that this is your first tenant or that you’re taking it easy. This shows weakness and will eventually charge you an arm and a leg later. Let them know that you are close by watching over them, persistent, timely, that you must remain professional, and of course, have the house in the same condition that they found it.
Clearly reviewing every rule and procedure in the lease notice will reduce headaches for both of you later.
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-Each hole in the wall to hang pictures costs an additional $50
– Consequences + charges of everything moved/broken/modified inside/outside the house = think of everything!
-(To end on a high note, no matter who you work with) is to have them pack up their things by a certain date and not leave them there or else they have to pay for the garbage disposal themselves .
Ironically, these were the most common annoyances that appeared with those who had the most prestigious backgrounds with the best grades and average credit ratings.
I even knew that in college, grades weren’t everything, but at the request of a tenant, it subconsciously strengthens their rapport. Don’t be fooled! Everything on paper does not translate to how people live.
If you assume that a popular entrepreneur who wants to rent your place for 2 years is the ideal solution, remember this.
Lucrative does not mean forever. In fact, nothing is temporary, especially social media.
If your tenant doesn’t have a steady stream of income from a Fortune 500 (the most favorable of landlords and most co-op boards), that’s a red flag. It doesn’t matter if you’re a YouTuber earning 8 figures a year or Joe Rogan, believe it or not, their income will be considered less mature and reliable as a tenant than someone who earns a third but with better working credit. for a company brand name you can love or hate.
People seek consistency and reliability, especially with their most prized possessions: their homes. Owners have to deal with a lot, and even working with one can be a full-time job to begin with.
You may be wondering as a full-time student entering my senior year in the fall, how did I do?
It’s certainly manageable, but again, it requires a certain personality, diligence, and work ethic separate from the office type.
At the start of the pandemic, I was able to secure a unique offer on campus and rent it out to people who committed to stay through the pandemic because they expected it to be at the time. lasts a few days to weeks.
Luckily they stayed to this day and didn’t get impatient like millions of Americans who ran to the suburbs to find land and found NYC to be the most peaceful island they had ever been on. never been !
As a lifelong New Yorker, I tend to forget that NYC is an island. We are so packed like sardines that it feels like a country in itself.
Managing your time as a full-time employee versus the owner is not easy, but manageable. If I can do it, I think anyone can do it, especially in the city, with everything lightning fast and people everywhere, it’s hard to keep up with all the obligations, especially if you are not located in a borough.
Although Manhattan is an island, it is difficult to get quickly from downtown to downtown and vice versa, so it is essential to be near your rental to check on your tenants at all times and ensure that they did not crash. to party.
Besides being close and treating it like a babysitting job for a while, it would be helpful to get into the idea of having renting as part of your lifestyle and job. permanent part-time. Replace it with the other gig you intended to get at a retail or fast food chain and put more effort into the asset you own and now share with someone else. Real estate is more valuable and more stable than investing that $16 per hour salary after all.
There’s no better feeling than being able to nurture and cherish the haven you once loved and care for someone else.
As with any job, don’t tie your unique identity to your location. Give your tenants some air; however, let them know that you are so reliable and trustworthy that it would be foolish to move.
As with everything, the more time and energy you put into something, the more dividends it will pay you later. The worst risk is to risk nothing and before diving into the depths, model and practice with cheaper options before there is a real roof over your head.