Teaching Kids About Property Management by Managing a Rental
When most kids think about owning real estate, they imagine buying and selling houses—but one of the best ways to make money in real estate is through rental properties.
A rental property allows owners (landlords) to earn passive income by renting a home or apartment to tenants who pay monthly rent. However, landlords don’t just sit back and collect money—they have to manage the property, maintain it, and work with tenants.
By teaching kids about property management, they’ll learn:
✅ How rental income builds long-term wealth
✅ What landlords do to maintain properties
✅ How to work with tenants and solve problems
✅ The financial side of owning rental real estate
In this blog, we’ll walk through how to teach kids about property management by letting them “help” run a rental property, whether you own one or set up a fun simulation at home!
Step 1: Explain What a Property Manager Does
A property manager (or landlord) is responsible for:
🏠 Finding good tenants
💰 Collecting rent every month
🛠 Fixing things when they break
📜 Making sure the property follows legal rules
📍 Example:
If a tenant’s sink starts leaking, the property manager calls a plumber to fix it.
If a tenant doesn’t pay rent, the property manager sends them a reminder.
💡 Kid-Friendly Explanation:
"A property manager is like the boss of a rental house—they make sure everything runs smoothly!"
Step 2: Let Kids Help Find and “Approve” a Tenant
Before a rental home makes money, the property manager must find a tenant to live there.
1. Teach Kids How to Choose the Right Tenant
A good tenant should:
✅ Pay rent on time
✅ Take good care of the home
✅ Follow rules like no smoking or pets (if required)
📍 Example Activity:
Give kids three pretend tenant applications with different qualities.
Ask: “Who would you choose to rent your house to?”
💡 Example Tenants:
1️⃣ Emily – Pays rent on time but has two loud dogs.
2️⃣ Jack – Has never rented before and has a new job.
3️⃣ Sarah – Has a great job but paid rent late twice last year.
💡 Lesson for Kids:
"A good tenant takes care of the home and pays rent on time!"
Step 3: Teach Kids About Rent & Expenses
Rental properties make money through rent, but landlords also have expenses like:
🏦 Mortgage payments
💡 Electricity, water, and maintenance
🛠 Repairs (like fixing a broken sink)
🏡 Property taxes & insurance
📍 Example Activity:
Give kids pretend rental numbers and have them calculate profits.
💰 Example Rental Property:
Rent: $1,500 per month
Mortgage: $900 per month
Taxes & Insurance: $150 per month
Repairs: $50 per month
Total Profit: $1,500 - ($900 + $150 + $50) = $400 per month
💡 Lesson for Kids:
"Landlords don’t keep all the rent—they have to pay for the house and repairs too!"
Step 4: Show Kids How to Collect Rent & Handle Late Payments
One of a landlord’s most important jobs is collecting rent on time.
1. How Rent Collection Works
✅ Most tenants pay through a website or check.
✅ The landlord sends reminders if rent is late.
✅ If a tenant doesn’t pay, the landlord must take legal steps.
📍 Example Activity:
Let kids pretend to send rent reminders to a "late-paying" tenant.
Have them track payments on a pretend spreadsheet.
💡 Lesson for Kids:
"Rent must be paid every month, just like paying for a phone or internet bill!"
Step 5: Teach Kids About Repairs & Maintenance
🏠 Every home needs repairs! Landlords must fix things when they break to keep tenants happy.
📍 Example Activity:
Create a list of pretend repair requests and let kids decide what to fix first.
🔧 Example Repairs:
1️⃣ A broken toilet – URGENT 🚨
2️⃣ A small crack in the wall – NOT URGENT ❌
3️⃣ A leaking roof – URGENT 🚨
💡 Lesson for Kids:
"Some home repairs are emergencies, and some can wait!"
Step 6: Let Kids Be "The Landlord" for a Day
To make learning fun, let kids act as a real landlord and manage a pretend rental.
How to Play "Landlord for a Day"
1️⃣ Set up a pretend rental property (use a dollhouse, toy house, or just paper drawings).
2️⃣ Have kids choose a tenant, collect rent, and handle repairs.
3️⃣ Throw in unexpected situations, like:
A tenant pays rent late → Kids decide how to handle it.
A tenant calls with a maintenance problem → Kids call a "repair person" (you!).
💡 Lesson for Kids:
"Owning rental property is like running a small business!"
Step 7: Explain How Rental Properties Build Wealth
🏡 Owning a rental home is one of the best ways to build long-term wealth.
Here’s why:
✅ Tenants pay rent, covering the mortgage
✅ Over time, the home becomes more valuable (appreciation)
✅ The landlord builds "equity" (ownership in the home)
✅ Later, the home can be sold for a profit or rented for even more money
📍 Example:
A home is bought for $200,000.
Over 20 years, the tenant pays the mortgage through rent.
The home increases in value to $400,000.
The landlord made money AND owns the home free and clear!
💡 Lesson for Kids:
"Real estate is a smart way to make money for the future!"
Conclusion: Teach Your Kids About Real Estate by Managing a Rental!
By involving kids in property management, they will:
✅ Understand how landlords and real estate investors make money
✅ Learn how to manage a property and handle tenants
✅ See how rental properties can build wealth over time
✅ Gain important skills like budgeting, problem-solving, and customer service
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