Why become a landlord?
There are many reasons you might be looking to become a landlord. It could be something you’ve always wanted to do, or perhaps you’ve heard about it and want to try your hand at it. Some of the reasons people look to become landlords include:
You can earn extra income
It’s never a bad idea to have some extra income coming in, particularly in the current economic climate. If you want to earn some money on the side and have it roll in every month without you having to do too much, then being a landlord is a fantastic choice. You will have to pay for things like maintenance of the building and repairs if needed, but carefully think about how much rent you will charge and you can incorporate additional costs like this in, as well as getting insurance.
It’s something to do if you have spare time
If you find yourself with some spare time or if you are retired and want to do something extra with your time, being a landlord can be a great way to fill this. It isn’t too demanding and you have flexibility to sort admin bits only when you want to. It can be a good project to focus on, particularly if you decide to renovate a house and then rent it out - it can be something to put your mind to and help if you feel like you’re stuck in a bit of a rut.
It’s a long-term investment
There is something about the security of having a rented property (or portfolio of properties) that can help you feel much more secure in yourself and also your future. While jobs can be lost, a property is something you will always have and know will bring in a solid income through rent. If you decide you no longer want to rent it out, you can then sell the property and pocket the cash, so further down the line it will continue to bring you some money in and help your finances for the future. It can be a good plan for retirement funds.
What are some top tips for being a landlord?
If you decide to be a landlord, it’s not something you want to take on lightly. It does require work and you need to make sure you do it properly. If you want to become a landlord, some of the main pieces of advice include:
Ensure you follow legal advice
The first thing and one of the most important aspects you need to remember as a landlord is to comply with legalities. There are a number of legal elements you need to consider when letting out a property, including maintaining a safe and habitable property, keeping it maintained to a high standard and following rules about the fees you can and cannot charge for, as well as protecting their deposit. If something happens and you need support, it's worth speaking to consumer protection attorneys, they can assist with things like background check errors and tenant screening errors.
Vet your tenants carefully
Your tenants are the people who you will be trusting to live in your house and therefore you need to make the right decision with who you pick. Vet your tenants carefully not just checking whether they can afford your property, but also what sort of people they are. Would you prefer a family with a young child? Or perhaps a single, working professional. Think about the space you have, the area you live in and the sort of neighbours you have. You could ask about their future goals and try to find out how long they would be planning to stay in your property. This can help you get people that will be long-term.
Communicate well
Communication is key as a landlord. You want to try and get back to your tenants as soon as possible so they know you’re there to help and are happy. If something breaks or if there is a problem like a leak, they will need this to be looked at sooner rather than later to avoid damage to your property. You can hire an agency to help take care of these things.
Think about the decor and furniture
As a landlord, you want to provide a space where people feel comfortable and happy to live, but also that you won’t mind too much if it needs to be touched up or repaired. Things such as wear and tear are bound to happen so you don’t want to spend a large amount on things like furniture and decor if you’re going to worry about any fixes that might need to happen in the future. On the other hand, you still want it to look nice and be a space your tenants are proud to live in. It doesn’t need to look like a boutique hotel, but decorating in neutral shades and providing them with a blank canvas for their furniture can really help.
These are just a few top tips for becoming a landlord that can help you to be one of the good ones. We’ve all heard horror stories about unfair landlords - and the same about bad tenants, so by being prepared, getting everything ready and knowing your rights and what to do, you should minimise any issues from occurring. Do you know someone who is a landlord? Or have you done it before? What are some top tips you have for being the best landlord possible? Let us know in the comments below, we’d love to hear from you.
