Open Your Eyes Before Opening The Door!
Is Becoming A Landlord Really Worth It?
You hear a lot of horror stories from the perspective of a tenant renting a property, but what about the landlord? Someone who owns a property has a lot of things on their plate, and if you have been thinking that it’s an option to get a bit of extra money in, for a little bit more work, let’s try and answer the question, is becoming a landlord actually worth your time and effort?
Taking Advantage Of A Burgeoning Market
This is probably an understatement, because it’s more than burgeoning. Rental agreements are becoming the go-to option for the millennial generation who are unable to save enough money for a down payment due to mortgage costs being so astronomical. As far as day-to-day living is concerned, rental agreements are quicker, easier, and don’t have as much stress as the process is concerned when getting a mortgage. Because of the high demand, you can take advantage of this, so long as you find a location for your property that is going to net you a decent amount of money in rent. After all, you buy a poor quality property in a cheap area, and you won’t get the big bucks you are after.
How It Impacts You Personally
Being a landlord is a 24/7 job; let’s get this out of the way. You are always going to have missed calls on your mobile from the rental company, and your weekends will be spent painting, decorating, and fixing little issues that, if you don’t get at it early enough, can cause much bigger problems. After all, it’s down to you to fix these issues. And these issues will cost money. There are ways around making it a bit more lucrative for you, such as taking advantage of triple net properties, but in the grand scheme of things, you have to invest some money into the property in order to get any financial benefit further down the line. In addition to this, it is a drain on your time.
Is It Worth It In The Long Run?
If you don’t live far from the property, or you decide to become a live-in landlord, it could very well be a great option for you, but if you are living abroad, or you’re trying to juggle a handful of properties at the same time, this will be a full-time job in itself. You don’t have much downtime when you are a landlord, but, if you go into this knowing that you will have a nest egg for retirement, so long as you’re willing to put in the work, and understand how much of an undertaking being a landlord is, then it is worth it.
Because so many people view being a landlord as a glamorous and quick way to get money, the reality is far from the fantasy. However, if you are looking for an investment to help you out, and you’ve got spare cash, real estate is one of those lucrative options that’s more sensible than most. But go into this with your eyes open.