Being a landlord
What does owning a rental really involve?
2 minute read
Rentals pay you three ways: monthly cash flow, the tenant paying down your loan, and the property gaining value.
Costs are real: repairs, vacancy, insurance, taxes, and your time. Plan for about 10% of rent for repairs and 5 to 10% for empty months.
You can self-manage or hire a property manager for about 8 to 10% of rent. That turns it closer to passive.
Screen tenants carefully and follow your state’s landlord laws.
Why this matters
Good rentals build wealth quietly. Bad math or bad tenants turn them into a second job that costs money.
What to do with this
- Run the numbers with repairs, vacancy and management included.
- Keep at least 3 to 6 months of property expenses in reserve.
- Learn your state’s landlord-tenant rules before you rent.
Want this applied to your own numbers?
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