The property game is one of those that, from the outside, appears to be a sure way to make money. And, although it certainly looks like you can make a decent living by purchasing properties, fixing them up, and then either selling them on or leasing them out, there is a lot of red tapes involved. And although there are many different regulations as a buyer, this doesn’t solve the issues that come once you have purchased the property. One specific problem is when you choose to lease the property; you become the landlord. On the surface, it seems very straightforward, you find tenants, they pay rent, and everyone’s happy, right? In fact, there are many things you need to ask yourself before you venture down this path.
Should I Do It All Myself?
Lots of people feel that by taking on the role of landlord and dealing with every single aspect themselves, that means you could pocket more money at the end of the day. Yes, this is true, but do you have the time and energy to deal with the various issues that could crop up with your property? Lots of landlords realize that it’s a more significant task than they anticipated, so they ask for additional help, in the form of a property management company. There are various property management companies around, based on where you live. Businesses like Vision Property Management, which are found in California, have multiple resources to deal with landlords and residents alike.
It can be difficult in choosing the best property management company for your needs, so be sure to undertake research and find the right one for you. The best property management companies would be able to offload the majority, if not all, of the work. From advertising the property, collecting the rent, organizing repairs, and dealing with the tenants themselves. This process is, of course, a service you would have to pay for, but it may be a small price to pay in the grand scheme of things.
Am I Going To Be Able To Sustain This Financially?
While a rental property is a way to earn money, the reality of it is that it makes you money over an extended period, not in the short term. The first bit of financial concern to consider is the mortgage on the property. If you are trying to pay off this property, as well as your own home, it could mean you end up in more debt than before. If you are picky when it comes to finding the right tenant, it can mean that the process of finding the right person may take a little longer than planned. This time frame could lead to your property being vacant for months.
You need to make sure that you are financially prepared before embarking on this investment. There will be times when the property is empty after a tenant has gone, but also, with issues like maintenance and upkeep, this will come out of your pocket. All of which require sufficient financial support.
Am I Comfortable Being Responsible For This Rental Property?
Many legal issues come with owning a property. Not just the fact that it needs to be up to code and is fit for purpose, but there are ongoing rules that you will need to follow. The tenant and landlord relationship can be a difficult one at the best of times, and you need to be aware of the rights a tenant has. Remember, if a tenant feels you have treated them unfairly, they are within their rights to take legal action. If you end up going to court and losing, this doesn’t just mean you being out of pocket, but it also means that you may find it more difficult to get back into the landlord game. It is a lot of responsibility, and there are lots of legal issues that you need to get your head around before you venture into this profession.
In addition to these, you may have to deal with significant personal issues. For example, if a tenant has a dispute with neighbors or your tenant isn’t up-to-date with their payments, this could all have a personal and financial impact on you. This is why you need to think long and hard before becoming a landlord. Yes, it is a way to earn an extra income, provided you are prepared for the additional concerns that come with it.