Is The Life Of A Landlord “Easy Money?
It’s a double-edged sword. You may have found the perfect investment property, and got everything down to fine art. But now what happens? Is it time for you to rent out this property you can get more money? The big mistake a lot of people make is that it is “easy money.” Is it really easy money? Or are there a few compromises you have to make to live the life of a successful landlord?
How Self-Sufficient Are You?
If you’re someone that’s naturally able to fix leaks and other handy jobs around the house, this is a good start. While being a landlord can consist of tenants paying you, naturally, there will be a lot of problems that arise. But this all depends on how you’ve upgraded the property in the first place. You could have flipped the property, ensuring that it was done with a quick turnaround, but it’s up to you to go through the place with a fine tooth comb and look for any glaring errors or omissions. Because a lot of landlords make cheap fixes, this may not be the best investment. Give it the time and money it deserves!
How Are Your People Skills?
Ultimately, they are a customer, and they need to be happy with the place, but also, if they have a direct line to you, they could be calling all the time if there are constant problems. There is a way around this; you can get a property management company that does the work for you. They can liaise with the tenants, making life a bit easier for you. But you have to remember that it’s down to you to give the go-ahead for a lot of the major fixes. When it comes to being a landlord, a lot of people don’t like having this constant communication. But it’s something you have to get your head around if you want to make it a viable living.
Are You Sufficiently Covering Your Expenses?
As the life of a landlord can seem like an easy way to get money, you need to ensure that you are covering your expenses and overheads. Because if you have tenants calling you in the middle of the night, and you are only charging a certain amount of rent where you are barely making a profit, you’ve got to ask yourself if this is worth it. Because if you are only just covering your expenses, when you do the math and see that you are earning a minimal amount of money for a lot of work, do you need to be charging more rent? Or, is it actually a viable money earner for you?
Is the life of a landlord easy money? Well, it depends on the investment you put into the property upfront. The best properties will stand the test of time. A lot of landlords want to get onto the property ladder and earn an extra income, but this means that they’ve got to put more money in at the outset. It’s a double-edged sword, but you have to think about the financial aspect and personal impacts.