Being a Landlord: 4 Questions to Ask Yourself Before You Begin
Of the many side hustles people have, being a landlord is one of those that inevitably takes over their entire life. Lots of people think they have the aptitude to be a landlord or a property developer, but there are a few things that you need to remember before you start down this path.
How Much Time Can You Physically Dedicate to It?
Lots of people make the mistake of thinking that it is a side hustle. In reality, it is not a side hustle at all and can take over your entire life. There are many people who recognize that looking after a property is a full-time job and itself, which is why they turn over the duties to a property management company, which ensures they have the ability to do it properly.
We also have to remember that being a landlord means that you will have calls at any time of day because the tenant has had issues with its plumbing or locked themselves out. So when you think about what you can realistically do based on your current working situation, it might be worth getting extra help.
How Handy Are You?
Landlords who can manage a lot of the small repairs are in a far better position than those that need to ask for help for every single request. When it comes to an investment property, you have to remember that you are physically investing in it. It can certainly be a great way to earn money in the long run, but you have to give it that care and attention. This is especially true for older properties that may have problems like asbestos or Radon. It always helps to have some DIY knowledge, and there are plenty of DIY courses that you can undertake to get you started. Even if you didn’t think of yourself as a handy person, after owning a property you have no choice but to get started in it.
What Are Your Financial Skills Like?
You could very well think that running a property is pretty straightforward because you’ve just got to pay the mortgage, but there is a lot more to bear in mind because you need to not just pay the mortgage, but you need to collect tenants’ rent and a number of other fiscal responsibilities. It’s always a good idea to have a certified accountant help you when it comes to filing your tax return, and if you have a certified accountant, they could also help you with all of the numerous paperwork that will inevitably pile up over the years.
What Kind of Tenants Do You Want at the Property?
Finally, if you want to be a very specific type of landlord, you need to make sure that you have the appropriate tenants. Lots of people are now in competition to attract certain types of tenants, but many landlords think it’s better to have anybody paying the rent. But when you have tenants that don’t go through vetting, you will potentially run into problems with late payments and potentially even worse things like damage to the property.