How Much do Landlords Make? (Told by Industry Expert)

by Tara Caruso


Landlords play a big role in the housing industry. They provide necessary services that help people find places to live.

But how much do landlords make?

We’ll explore the ins and outs of a landlord’s income and average landlord earnings.

Plus, reveal ways that landlords can increase their earnings potential!

What Do Landlords Do and What Services Do They Provide


Landlords are an important part of the real estate industry. They own, manage, and maintain residential and commercial properties.

Landlords play a vital role in ensuring that tenants have a safe and comfortable place to live or work.

They are responsible for ensuring that the property is up to code and meets all safety standards, especially with special cases such as Section 8 arbitrage.

They also need to make sure that the property is well-maintained and that any repair or maintenance issues are promptly addressed in order to make the most money with rental properties.

In addition, landlords need to screen tenants to ensure that they will be reliable and responsible occupants. By providing these services, landlords help to create thriving communities.

Tactic for Success

Run your business like a business. This includes having a clear understanding of your goals, your target market, and your finances. Also, stay organized and keep good records. By treating your landlord business like a real business, you can set yourself up for long-term success.

How much money can a landlord make?

How much do apartment landlords make compared to single-family home landlords depends on a number of factors, including the size and location of the property, the number of units, the type of tenants, and the local market conditions.

In general, landlords can earn a healthy return on their investment. The average return on investment for rental properties is around 10%, and can be even higher if you make money on Airbnb with short-term rentals.

This means that for every $100,000 that you invest in a rental property, you can expect to earn an annual income of $10,000.

Of course, your actual earnings will depend on a number of factors, including the ones mentioned above.

If you own a large apartment complex in a major city, you can expect to earn much more than if you own a small duplex in a rural area.

In addition, your earnings will also depend on how well you manage your property and how efficiently you operate your business.

You can take advantage of some of these cheap ways to increase home value to further boost revenue.

Ways to increase earnings as a landlord:

  • Increase Rent Prices Gradually Over Time – This helps keep up with the rising costs of living and inflation. It will also help to make improvements to the property or fix any repair issues that come up.
  • Screen Tenants Carefully – This will help to ensure that you are renting to responsible and reliable occupants who are less likely to damage the property or cause problems.
  • Be Proactive About Repair and Maintenance Issues – By addressing these issues in a timely manner, you can prevent them from becoming bigger and more expensive problems.
  • Operate Your Business Efficiently – This includes things like keeping accurate records, setting up a system for rent collection, and maintaining the property in good condition.

Tactic for Success

Use your application to screen for amazing tenants. Verify that the applicant has a consistent source of income and solid credit. Also, do a background check to be sure they don’t have a criminal record or any prior evictions.

What are the average earnings for a landlord?


The average earnings for a landlord vary depending on the size of the home, number of units, location, the current market, and many other factors.

In general, landlords can expect to earn a healthy return on their investment. Most landlords earn a gross income of between $15,000 and $50,000 per year for a single-family home.

This means that after expenses, the average landlord earns a net income of between $5,000 and $20,000 per year.

Of course, some landlords earn much more than this, and some earn less. It all depends on the individual circumstances.

Trend on the Rise

Adding an Accessory dwelling unit (ADU) to a property to increase rental income. An ADU is an additional living space on your property that can be rented out to tenants. This is a great way to increase your rental income without having to buy another property.

The major expenses for a landlord:

  • Mortgage Payments – This is typically the biggest expense for a landlord. If you have a loan on the property, you will need to make monthly mortgage payments.
  • Property Taxes – Property taxes are typically based on the value of the property and can vary by county.
  • Utilities – In some cases, the landlord is responsible for paying the utilities, such as water, gas, trash, and electricity.
  • Maintenance and Repairs – Landlords need to budget for annual upkeep and maintenance expenses. This can include things like painting, repairs, and landscaping.
  • Homeowners Insurance – This is insurance that protects the landlord in case of unforeseen damages to the property for example a fire or pipe burst.

How can a landlord increase their income potential?

There are a number of things that landlords can do to increase their income potential.

One of the best ways to do this is to purchase properties in areas with high demand and tight supply. This includes major cities and towns with strong economies.

Another way to increase your income is to purchase larger properties, such as apartment buildings or commercial complexes.


These types of properties tend to generate higher rental incomes and are a top way that real estate developers earn money.

Finally, you can also increase your income by providing additional services to tenants, such as laundry facilities, storage units and vending machines.

Trend on the Rise

The trend for landlords is to move towards becoming a professional property management company. This involves hiring staff, such as a property manager and leasing agent. This helps to take some of the workloads off of the landlord and allows them to focus on other things, such as acquiring new properties or expanding their portfolio.

Wrapping Up

Landlords play an important role in the real estate industry.

They provide necessary services that help people find places to live and in exchange, they can earn a healthy return on their investment.

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Tara is a licensed real estate agent in Southwest, FL. She helps buyers and investors find their dream home by educating them about real estate and how they can use it as an investment.

About the Author

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Tara is a licensed real estate agent in Southwest, FL. She helps buyers and investors find their dream home by educating them about real estate and how they can use it as an investment.