Become A Landlord - Business Ideas

Updated: September 15th, 2022
Become A Landlord

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Investing in rental properties and becoming a landlord is a lucrative way to earn money in the real estate industry.

By purchasing properties and leasing them out to tenants, you can generate a steady stream of income through monthly rent payments.

In recent years, renting has become increasingly popular, making it an opportune time to dive into this market.

Aside from providing a source of cash flow, being a landlord also offers the potential for long-term investment gains and the freedom to be your own boss in managing your properties.

Becoming a landlord requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell home rent, or selling home rent online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$170B
starting costs
$18K
gross margin
90%
time to build
270 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Employee & Freelancer Expenses

$151

$252

Website Costs

$223

$7,015

Business Formation Fees

$600

$4,700

Vehicle Expenses

$0

$10,000

Retail Business Expenses

$1,250

$6,650

Advertising & Marketing Costs

$75

$3,986

Software Expenses

$162

$2,720

Office Space Expenses

$0

$100

Specific Industry Expenses

$0

$500

Total Startup Costs

$2,461

$35,923

Successful Businesses

Business URL Rank

Cozy

cozy.co

18,584

Landlordology

landlordology.com

139,669

EZ Landlord Forms

ezlandlordforms.com

181,887

Landlord Studio

landlordstudio.com

271,973

MR LANDLORD, rental forms, training, credit checks

mrlandlord.com

469,337

Landlord Tips

landlordtips.com

541,387

LANDLORD PROTECTION AGENCY, Free Rental Forms, Credit Reports

thelpa.com

562,427

LandlordBC

landlordbc.ca

778,942

Landlord v. Tenant

landlordvtenant.com

841,108

LANDLORD

landlord.ua

886,671

Section 8 Housing Listings

hellosection8.com

1,092,460

Pros & Cons

Pros Description

Little startup costs required

The cost to start a landlord costs significantly less money than most businesses, ranging anywhere from 62 to 35,923.

Rewarding work

Starting a landlord can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Pick & choose the clients you work with

Landlordes have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!

Control of workload

With becoming a landlord, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Gain exposure and experience

This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A landlord can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

Work can be inconsistent

As a landlord, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.

Lack of benefits

With a landlord, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.

Taxes

As a landlord, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

No safety net

Typically, as a landlord, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.

Marketing Ideas

  • 1

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 2

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 3

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜