Renting out property can be a wonderful way to earn money, and a lot of people dream of being a landlord. They see it as an easy source of extra capital, one which requires a minimum amount of time and effort after the initial act of buying a house or flat and then finding a tenant.
This image of life as a landlord is not entirely accurate. It can actually take up many hours, and there is a lot to think about before you decide to take the plunge. From sourcing property to locating tenants, taking care of affairs, and being on call 24/7 for repairs, you need to know exactly how involved you wish to be, and what role you want to play.
If you’re wondering whether it’s right for you, then here are three very important things to think about…
#1: Your Earnings
A lot of people imagine that being a landlord is a failsafe way to earn money, but this isn’t exactly true. Aside from the initial layout required to purchase property, you’ll need to pay for repairs and renovations, and often furnishings too. All of these costs must be covered before you can even think about finding paying tenants, so you need to be realistic about how much you’re really going to earn. When it comes to looking at your property, tot up how large your monthly outlay for maintenance, your mortgage, and so on is likely to be, against the amount that you can charge tenants to live there. Once you have the sums to hand, be realistic: in the long-term, would it really be more profitable to let, or would you perhaps be better polishing up your property before selling it?
#2: Your Involvement
Another point to consider is how involved you want to be. If you decide that renting out your property would be a good long-term financial proposition, how much time and effort will be required on your part to play the role of landlord? This will vary from seller to seller, and a lot of this will be determined by how much responsibility you want to take on yourself, and how much you would like to hand over to an agent or other professional. The more work you do yourself, the lower your outgoings will be, but you can’t base your answer on this alone: the important thing is how much time you’re actually willing and able to sacrifice.
#3: Your Agent
Most landlords will use an agent to help support them in their role, and if you decide to go down this route, then it’s important to choose yours with care. Cost, reputation, and the overall service that’s on offer should all factor into your decision-making. It’s often handy to draw up a shortlist of potential agents, and then call and speak to each of them in person. Companies like House Network have a fantastic reputation and a competitive pricing scheme, but the most important criteria should simply be which enterprise you would feel the most comfortable entrusting responsibility for your property to.
Consider these three things with care to turn your landlord aspirations into a successful reality.
