Whether you have just started a family, or you simply want to look into ways of securing your own future, at one time or another, most people think about the possibility of becoming a landlord. It seems so simple and easy. Buy a property, find the ideal tenants and watch the money roll it.
Oh, if only it was that straightforward.
Not that it can’t be a good investment in your future, it can, but it is most definitely not for everyone. Find out here whether being a landlord is right for you by answering the questions below.
Are you looking to get rich quick?
If your answer is yes, then becoming a landlord is probably not for you. Yes, you can make money by buying a property, renovating it and selling it on, but you need to know what you are doing and have reliable builders to do so, and even then, you will only make a small profit.
Renting out a property is no different; on average, you are looking at around a 7% yield which although a comfortable sum, is not an amount that will allow you to sell up and retire abroad in five years’ time. It can be a slow process, building up your portfolio and gradually making more money, but it is definitely worth looking into if you want to start securing a healthy pension pot.
Are you willing to do the groundwork?
Starting any new business takes time, preparation and a lot of research. So, if you are not willing to put any effort into learning about the property industry, and how to become a successful landlord, there is little point in you investing in property.
Of course, you can enlist the help of a property consultant to help with concerns such as business rates advice but you still need to have a rough idea about what you are doing and what your legal requirements will be as a landlord.
Are you prepared to invest more money?
You cannot simply buy a property, sit back and wait for early retirement. A property requires maintenance and upkeep, and it is your responsibility as a landlord to arrange and pay for this. It is also extremely difficult to plan for eventualities such as a broken light fitting or fridge that has stopped working.
Not to mention, the whole host of other expenses that you need to pay for in order to rent out your property; insurance, legal fees, marketing costs and relevant taxes.
Are you a people person?
Being a landlord requires you to think on your feet, remain calm in stressful situations and most importantly, it involves being able to effectively communicate with a wide variety of individuals; tenants, letting agents, lawyers, bank managers, maintenance companies; the list is never-ending. Therefore, it is definitely a plus if you have good people skills and a desire to help others when they need it.
Despite all of the above, becoming a landlord can be a very rewarding experience as well as being a great way to invest in your future, so if you think you are up to the task, start the ball rolling and look for a potential property to buy.