So, You Want To Be A Landlord?

If you’re thinking of supplementing your income as a landlord, or making it your full-time career, there’s a lot to learn. While you may know a fair amount about property investment and the factors that affect it, the life of a professional landlord has a lot of things you need to learn as you go. Countless people rush into renting out property way too fast, and wind up discovering that they’ve shot themselves in the foot by making the decision. Before you decide to become a landlord, here are some important things you should know.

It’s Not a 9 to 5

The day-to-day work of a landlord typically doesn’t have much structure to it, and can be very impromptu. You’re not going to be coming into work at nine, having a lunch hour in the middle of the day, and leaving the office at five. One day, you may have one hour of work to get through, and the next you may have twelve or even more. Your daily duties and obligations can change at the drop of a hat. You may head out to a property, expecting to be there for just ten minutes to collect rent. Then, when you arrive, your tenant asks you to check out a leak they’ve discovered. Unless you want to cause more problems for yourself later, you’ll then need to invest some time to troubleshoot the issue. That simple ten-minute rent collection can quickly turn into an ordeal that lasts for hours.

You’ll Have to Juggle a Lot of Jobs

It can be quite hard to accurately define what a landlord does, as your typical one has to do a range of different things. If you want to have any kind of success as a landlord, you’ll need to step up to the plate and fulfil these roles as best as possible. You’ll have to be a realtor and sales rep to draw in tenants, you’ll need to be a negotiator and debt collector to work through financial issues, you’ll need to be a handyman and DIY expert to keep your properties in good working order, and occasionally a detective gathering evidence that a tenant has breached their agreement. It’s a big mistake for anyone to approach being a landlord with the attitude that it’s all about sitting back and managing things from a phone. If you don’t understand and prepare for the different roles you’ll be required to fulfil, you’ll only cause problems for yourself later.

You Need a Keen Understanding of the Law

Many people think that the process of sourcing and renting out property is a simple affair. You look for a good house or apartment for sale, purchase it, rent it out and then watch the money pour in. Simple enough, right? In reality, if things were this simple, everyone would be a landlord. One of the factors that complicates being a landlord is the sheer amount of legal regulations you have to be familiar with. There are certain things you can and can’t ask when you’re interviewing prospective tenants. There are fair housing laws, intended to give everyone a roof over their head, which can dictate what does and doesn’t count as discrimination. There are rules as to how you handle a tenant’s security deposit. There are also various safety codes which you need to make sure you abide by, for example having working smoke detectors installed, and handling health hazards like lead-based paint and asbestos. You’ll also need to make sure that the plumbing is in good working order, and the property stays free of any rodent or insect infestations.

It’s a Learning Curve

You may be a very intelligent person who’s good with money, but if you don’t have any experience of renting out to tenants, you’ll inevitably run into a few bumps on the road. There’s only so much that you can learn from reading guides like these and networking with people who have some experience with property investment. If you want to be a competent landlord, you’ll need to learn from your triumphs and mistakes in equal measure. When you’re a landlord, many things aren’t as simple as they seem. Let’s say that a tenant calls you and says that they saw a mouse in the property. Logically, you’d call an exterminator and hire them to get rid of the problem. However, when they turn up and look in the crawl space, they notice that you have a huge growth of mold developing. An open and shut case can quickly become a much more complex, and much more expensive issue, that will take significantly longer to deal with. Another common example is choosing the tenants you’re going to let live in a property. It’s pretty common for new landlords to go through the typical screening steps. They think they’re doing everything right, but run into issues a couple of weeks later, and are forced to evict the tenant. These are just a couple of issues that you’ll need to face head-on and learn from.

It Can Be Very Rewarding

I figured I’d save the best until last! While there are all kinds of struggles and challenges that can come with being a landlord, there are also many great rewards. Obviously, you’ll be able to reap a decent amount of income. Aside from that, if you can rely on being a landlord for all your financial recourse, you’ll get a lot of freedom and flexibility in being your own boss. There’s also a lot of pride to be had in seeing what you’ve been able to build up and maintain through all your hard work. With a little bit of luck, you’ll develop very fulfilling relationships with your tenants. The simple fact that you’re able to provide a home for your fellow human beings, and help them when life throws a curveball their way, can be exceedingly rewarding, and make all your hard work and struggles worth it. Finally, if you’re able to build up a healthy and stable portfolio, you’ll leave a great nest egg to your loved ones.