What You Need to Know About Becoming a Landlord

They say that investing in property is one of the safest and most sound investments people can make. Sure they may not make a fortune overnight, but the idea is that they build wealth over the years and can end up providing you with a pretty impressive retirement nest egg if you plan out your investments wisely. But maybe you aren’t satisfied with watching the value in your home grow. Perhaps you’re thinking about taking it a step further and investing in rental property?

If you’ve been thinking about becoming a landlord, but aren’t sure if it’s the right step for you, here are a few key things you’ll want to know about being a landlord.

It’s Up to You to Fill the Property

First things first, your investment property can only make you money if it is occupied. It will be up to you to fill that property, not just when you first take ownership but anytime there is turnover in your tenants. Obviously the more rental units/properties you own, the more of a challenge it can be to stay on top of them and keep them all occupied. You need to have the time and resources needed to dedicate to this task.

You May Need Specific Buildings Insurance

If you plan on investing in a block of apartments, flats, or rented property then you’re going to need buildings insurance. This type of insurance is often called “block insurance” or “let property”. As Deacon points out it’s important to not only secure this type of insurance but find one that offers the kind of pricing and coverage that makes sense to you as the owner. And remember, this insurance coverage needs to apply to property that is occupied and vacant, as you don’t want to be without.

The Property Needs to Appeal to Renters – Not to You

It’s also important to step out of the role of homeowner, and into the role of landlord when it comes to curb appeal. As you search for the perfect property or properties to invest in, you want to ask yourself what would be attractive to renters? They are the ones who will be living there, not you, so your personal preferences need to be put aside.

Things such as amenities, proximity to public transport, walkability score, schools in the area, and even the reputation of the neighbourhood should all factor into your decision. Your rental property is, in fact, a business, it isn’t your home.

What Will You Do About Issues that Arise with the Property?

Finally, you want to ask yourself how you will deal with issues that arise with the property? These can be things like a leaking tap or toilet, problems with the roof or windows, electrical issues, and so forth. Experienced landlords point out the importance of having a network of professionals that you can rely on. These are handy people, plumbers, electricians, and so forth that you can call on and rely on for speedy and reliable repairs.

Becoming a landlord can be an excellent move if you take the time to learn all that will be expected of you, and the kind of responsibility you will be entering into.