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3 Things to Think About Before Becoming a Landlord
Often seen as a quick way to make money, there are actually a lot more steps to consider before you can become a landlord, a lot of laws to follow, and a whole heap of responsibility on your shoulders. This farm software company shows us 3 crucial things to think about before you become a landlord.
It’s a lot of responsibility
There are a lot of rules that landlords must follow, and it’s not an easy job to handle by yourself. From a legal standpoint, you have to be strenuous and precise when it comes to interviewing prospective tenants.
There are also aspects of the job that you may not have thought of before, like general upkeep of the houses or flats you’re renting out, handling deposits, and understanding tenancy agreements.
You may become a jack of all trades as a landlord, too. When problems arise in your properties then you may become a rent negotiator, a person that has to collect missed rent payments, dealing with problem tenants and repairs needed.
It’s not like a normal office job
Your working hours will often be very sporadic and at random times of the day. Your tenant may ring you at 8 in the morning asking why there’s no hot water in the flat. It’s up to you to act on these immediately.
Obviously not every problem can be handled straight away, such as when someone comes calling very late at night. But it’s imperative that you handle it as soon as you’re able to or call someone that can.
Understand the financial impact
It costs a lot of money to set everything up. You may be buying properties that cost a lot to make livable. The rent price should be reflective of the area and property quality, which may or may not give you a loss in the beginning.
There’s also landlord’s insurance, any buyer’s fees, whether you hire a property management company to handle some elements of the tenancy or general property maintenance.