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Should You Become a Landlord?

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 this (either alone or by outsourcing the responsibility to a reputable, well-recommended property management company) and pay for it. It is also extremely difficult to plan for eventualities such as a broken light fitting or a 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.