Being a full-time landlord is a dream for many. You manage your own time, don’t have to deal with long and draining morning commutes, and could end up generating enough income to retire early. While many people see this as a perfect career option, it can also be difficult to get into and so it’s important to take the right steps.
Property investment is often something that starts out as a side venture to accompany a full-time job. Most landlords in the UK choose to rent out property to supplement the main income they get from their regular role. A study in 2018 found that two-thirds of British landlords only work on their properties part-time alongside their ‘nhttps://www.mysmartmove.com/blog/9-must-know-tips-new-landlordsormal’ jobs. Some landlords, however, find that they’re making enough money from their investment properties that they can live solely off this income. So how do you make the jump from part-time to full-time property investor?
Before even thinking about investing full-time, you need to first get to grips with property investment and what it involves. Most full-time landlords build up a property portfolio over time, gaining more experience and knowledge of the industry as they go along. Make sure you start out by investing in a property that has a lot of potential for first-time investors. One of the best options for this is student buy to let, which is often affordable, comes with high rental yields, and can guarantee a steady stream of rental demand.
Once you feel like you’ve grown more accustomed to the property world, create a business plan which outlines all your long-term property investment goals. This should include things like any financial aspects of the investment, any potential issues you might encounter, and your ideal outcome and timeframe. Consider whether you want to work solely on buy to let properties, or if you want to also try flipping properties as an investment strategy. To fully get to grips with your goals and figure out how you can get the most out of investing, it might be worth hiring the help of a financial advisor. This way, you can paint a clearer picture of the steps you need to take in order to be successful and manage your money more effectively. Don’t forget to consider economies of scale. For instance, getting insurance for multiple properties in your portfolio can earn you a discount that’s better value than insuring a single property.
Think about the type of tenants you want your property to appeal to, and research the locations that will bring you the best returns, both through rental income and capital appreciation. In the UK, buy to let investment in Liverpool and Manchester presents some of the best opportunities, with higher than average yields, fast-growing house prices, and incessant rental demand brought from desirable tenants. RW Invest is a property company with opportunities in these key cities that are well-located and offer some impressive yields. Building a property portfolio within these cities is likely to help you meet your goals more quickly, and start to transition into pursuing your investments full-time.
Before entering the property world full time, remember to keep soaking up as much information as possible. Read as many books and articles as you can, attend networking events, and speak to others who have first-hand experience of pursuing their investment properties full-time. Transitioning towards being a full-time landlord takes time, patience, and a whole lot of knowledge, but the returns and sense of achievement will be worth it in the end.
