How to be a landlord if you buy rental property: What you need to know

The idea of making money on the side from owning a rental property can bevery appealing, especially if you view the venture as a possible way to quit your day job eventually or subsidize your income when you retire. And depending where you buy a rental property, it may take up to five years before the rent you collect matches or exceeds your expenses, said Chris Cooper, a certified financial planner in San Diego, California, who is a landlord himself. And unless you’re very skilled at making home repairs yourself and plan to live near your rental property, you’ll likely spend 20% to 25% of the rent to pay a property manager, Cooper said. Geong said she had one client with a bad tenant who couldn’t handle all the headaches, and chose to sell their rental property just one year after buying it. You’ll be able to deduct your rental property expenses – including all the interest you pay on your mortgage.