Can You Be a Landlord?
The world of property is still a solid money earner for those individuals who are keen to embark on a side hustle. You may have savings in the bank that are accruing minimal interest and you want to see your money work more aggressively for you. Bricks and mortar could be the perfect way to help see your money grow.
While it was once easy to flip a property within months and make lucrative profits, this is now much more difficult. You need to consider a more long term investment for your property money making dreams. Take a look to see if you have what it takes to become a landlord.
The most crucial aspect of property development and investment is buying effectively. There may be cheaper properties available in areas that you don’t know but the chances are that these buildings aren’t worth the money. You need to focus on areas that you know and that have a good reputation. Check out the property market forecasts for the next three years and look at the history of the market too. If the financial figures stack up, the region that you are looking at could be a safe investment. Consider how much it will cost to bring the property you want to buy up to standard. Always try and buy the worst house on the best street. This way, you can always outperform the market no matter how stagnant it may be.
When your property is ready to let, you need potential tenants to know about it. Consider hiring a specialist property management firm who can whip up a professional rental board outside the pad, as well as show your property online. This two pronged approach will attract the best tenants. Ensure you meet any tenant before you let out your property and sign any contracts. Perform credit checks and obtain employment and previous landlord references at the very least. You need to be certain that they can afford the rent that you are charging and that they are responsible individuals.
As a landlord, you need to be willing to put your tenants needs first. If the boiler breaks down in the property, don’t do some cowboy fixing job only for it to break again. You aren’t doing yourself any favors. You need to build your reputation as a good landlord. Ensure that you are willing to replace white goods (if this is mentioned in the contract). Wear and tear needs to be paid for by you and you need to maintain the integrity of the building. If there is a leak in the roof at three AM, expect to be woken up with a phone call. If this sounds like too much hard work, you can relinquish this responsibility to a firm that will manage your pad for you. For a small fee, they will collect your rent and be the proxy landlord, leaving you to get on with other more pressing aspects of your life.
Being a landlord isn’t for the faint hearted. However, if you are willing to invest your cash for a decade and watch your asset increase in value, you can make a tidy profit from your foray into the realm of property.