Being a landlord can be a terrific way to create passive income and build your wealth. As with all lucrative work, however, it's important to be prepared for the responsibilities that come with owning rental properties. You may want to consider hiring a property manager or a CPA - or both - if you don't have the time or expertise to be a hands-on landlord and manage the properties yourself. You’ll need to decide what works for you before making a decision about which landlord style is best: hands-on or hiring a property manager.

Recent years have seen a noticeable increase in homeowners investing in rental properties and converting existing real estate into rental property income. The appeal of the short-term home rental market has increased partly due to the COVID-19 pandemic amid safety concerns and has been further fueled by the skyrocketing prices of traditional apartment rentals, fluctuations in mortgage interest rates, and the slowdown of new home construction. If you’ve decided to enter this arena, you’ll want to take a moment to review the details of something we’ll refer to as New Landlord 101 - Learning the basics of rental property management. 

If you’re buying a new property as an investment or renovating one that you already own, make sure you understand how to profit from your real estate renovation. Stay focused on property improvements that make a profit rather than just make the building seem “better.” It’s easy to get off track with a muddled vision, and getting off track can needlessly cost you money down the line.

I talk with clients who want to invest in real estate. Some might be starting as a part-time landlord doing much of the maintenance and work. For others, it's a significant investment, and they are running a large operation with employees and many tenants. I advise all of them how important it is to do a good job of managing finances.