So, you finally saved up enough to put 20% down on your first investment property—congratulations! That’s a big milestone. But now comes the hard part: figuring out where to buy, finding the right tenants, and building a reliable team. Here are four tips that helped me on my journey as a first-time landlord.
1. Build a Maintenance Team Early
Unless you’ve been to trade school or enjoy spending your weekends fixing toilets and leaky faucets, you’ll need a reliable maintenance person and a few skilled tradespeople on call.
I can’t tell you how many times having the right maintenance team saved me money—and more importantly, saved me from unnecessary stress with tenants. A leaky pipe or broken furnace doesn’t feel like an emergency if you have the right people ready to step in.
2. Budget Like a Business Owner
I get it—your first rent check comes in and you start thinking about that new car you’ve been eyeing. But hold off.
Even if the house is in excellent condition, things break. Accidents happen. And tenants call. The smart move? Treat your rental like a business. Plan for insurance, vacancies, repairs, and future maintenance. I recommend saving most—if not all—of your first year’s profit. It’s your financial buffer and will keep you in the game long-term.
3. Choose the Right Property in the Right Area
Location is everything. It can be the difference between charging $2,000 a month in rent or settling for $850.
When you’re searching for your first property, ask yourself: Would I live here? If not, what kind of tenant would you be? Are you prepared for the potential challenges that come with that neighborhood? Having a knowledgeable realtor can help guide you to the right areas based on your goals.
4. Work with the Right Realtor
When I started looking for my first rental, my realtor at the time sent me a listing for a tenant-occupied home in a decent part of Detroit. I went to check it out, and immediately regretted it.
An elderly man lived there, but his kids and grandkids were crashing with him. Trash bags are everywhere, and Fruit flies are swarming around. I thought to myself, How much will pest control cost? Am I ready to be this family’s landlord?
Worse yet, that realtor kept showing me similar properties that didn’t align with my goals. It felt like I was wasting months chasing dead leads. Everything changed when I switched to a new realtor. She understood what I was looking for and showed me an off-market deal—recently updated, in a better area, and for the same price. I closed within a month.
The right realtor makes all the difference.
Bonus: Screen Your Tenants Thoroughly
Ever heard the phrase not all money is good money? The same applies to tenants.
Take the time to screen them properly. Run background and credit checks. Call previous landlords. If they’re new renters without a rental history, don’t hesitate to include stricter terms in your lease. It might feel awkward, but trust me—screening upfront beats spending your time in court or constantly dealing with issues.
Final Thoughts
Being a landlord isn’t just about collecting rent checks—it’s about managing a business, maintaining a property, and protecting your peace of mind. The first deal is always the toughest, but with the right people, planning, and mindset, it’s absolutely worth it.
If you’re starting your journey as a landlord, I hope these tips help you avoid some of the bumps I hit early on. Stick with it—and stay prepared.
