Land - Lordy
When most people talk about being a landlord, they will roll their eyes to the heavens and say absolutely not! I would never do that. For some, that’s a great mindset to have. Being a landlord isn’t something to just delve into without determining whether or not you have the skills and capability to succeed.
If you are thinking about becoming a landlord, there are a couple different factors to consider. These are:
The number one reason people get involved in rental properties in the first place is financial. They have little interest in doing the detail work that comes from being a hands-on landlord, but are more than happy to play Monopoly – collect several properties and pay them off with rent.
As the tax and financial benefits that come with owning rental properties can be huge, becoming a landlord is something to consider if you are trying to plan out a lucrative future. After all, having an asset that pays out even when you’re on vacation is an excellent way to live out your dreams. However, in the beginning it’s critical you only bite off what you can chew.
Many people suffering from the current housing crisis find themselves foreclosing on properties they trusted would bring in a positive cash flow. Be prepared for all sorts of mishaps (deadbeat tenants, repairs or taxes) to whittle away at your initial profit. When planning for the future, make your long term plan slow and steady. Remember – the tortoise wins the race.
Speaking of temperament, let’s talk about what it takes to become a landlord. Are you the type of person who takes people at their word? Avoids conflict? Would rather believe a sob story than use legal action to collect overdue rent? Then being a landlord may not be for you.
Some people find the responsibility of providing housing too emotional to undertake. Rather than requiring a deadbeat tenant to live up to their part of the bargain when it comes to paying rent, the emotional landlord will let the tenant get away with skipping out on rent, losing hundreds or thousands of dollars in the process.
If you can’t separate business from social involvement, being a landlord may not be right for you.
Finally, before becoming a landlord it’s important to consider your skill set. If you are handy at fixing toilets, repairing wiring and completing basic home improvement projects you have a leg up on the competition.
These types of repairs often sink the new landlord who does not have the skill set to complete repairs on his own, requiring him to contract work out at a large cost to him. If you have the skills to do these types of repairs on your own or the desire to learn how (and fast!) becoming a landlord may just be right for you.
If you are thinking about becoming a landlord, there are a couple different factors to consider. These are:
- Financial goals – where do you hope to stand financially in ten, twenty or even fifty years?
- Temperament – does your interest level match up with what it takes to succeed as a landlord?
- Skill set – do you have the current skill set or desire to acquire the skills necessary to successfully manage your tenants?
The number one reason people get involved in rental properties in the first place is financial. They have little interest in doing the detail work that comes from being a hands-on landlord, but are more than happy to play Monopoly – collect several properties and pay them off with rent.
As the tax and financial benefits that come with owning rental properties can be huge, becoming a landlord is something to consider if you are trying to plan out a lucrative future. After all, having an asset that pays out even when you’re on vacation is an excellent way to live out your dreams. However, in the beginning it’s critical you only bite off what you can chew.
Many people suffering from the current housing crisis find themselves foreclosing on properties they trusted would bring in a positive cash flow. Be prepared for all sorts of mishaps (deadbeat tenants, repairs or taxes) to whittle away at your initial profit. When planning for the future, make your long term plan slow and steady. Remember – the tortoise wins the race.
Speaking of temperament, let’s talk about what it takes to become a landlord. Are you the type of person who takes people at their word? Avoids conflict? Would rather believe a sob story than use legal action to collect overdue rent? Then being a landlord may not be for you.
Some people find the responsibility of providing housing too emotional to undertake. Rather than requiring a deadbeat tenant to live up to their part of the bargain when it comes to paying rent, the emotional landlord will let the tenant get away with skipping out on rent, losing hundreds or thousands of dollars in the process.
If you can’t separate business from social involvement, being a landlord may not be right for you.
Finally, before becoming a landlord it’s important to consider your skill set. If you are handy at fixing toilets, repairing wiring and completing basic home improvement projects you have a leg up on the competition.
These types of repairs often sink the new landlord who does not have the skill set to complete repairs on his own, requiring him to contract work out at a large cost to him. If you have the skills to do these types of repairs on your own or the desire to learn how (and fast!) becoming a landlord may just be right for you.