A rental company is a great source of residual income, which means that you continue to earn money from month to month based on contracts with your tenants. If you decide to start a rental company, it is important to secure adequate funding and develop strict legal policies with the help of an attorney.
Decide what type of property you would like to lease for your rental company. Many of these businesses work exclusively with multi-family housing, while others work in commercial properties or single-family dwellings. There are benefits and drawbacks to each, so go with the type that feels most comfortable.
Acquire enough property to start a rental company. In the case of multi-family housing or commercial business, a single property will probably be sufficient to start. However, if you're going to be leasing houses, you might want two or three properties for lease.
Develop a lease with the help of an attorney or real estate agent. The lease should cover every aspect of the tenant-landlord relationship, and should state specific policies and procedures for renting.
Hire an inspector to evaluate each of your properties for damage, needed repairs and zoning compliance so you won't run into any problems once you sign a lease. Renting an unfit property can result in serious legal damages.
Establish an office from which you will run your rental company. It might be located in one of the apartments in a multi-family housing building, or it could be a separate office entirely. Either way, it should be well-equipped with all of the tools necessary to run a successful business, including telephones, computers, desks and fax machines.
Develop an advertising and marketing plan to get the word out to prospective tenants. There are hundreds of potential advertising venues that you might consider, so take the time to research each one thoroughly.
Hire property management personnel who can help keep your properties in tip-top shape. Landscape crews, sales personnel, maintenance crews and leasing agents are all essential to the running of a successful rental company.
Hire a realtor if you will be leasing single-family units, or become a realtor yourself.
- Hire a realtor if you will be leasing single-family units, or become a realtor yourself.
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