subject: Four Drawbacks Potential Landlords Should Consider About Rental Properties [print this page] Real estate investments are a great way to make lots of money; however, there are things you need to ponder before you jump out of the frying pan and into the fire. This is never truer for someone who is purchasing property for the lone purpose of becoming a landlord. While there are great reasons to get involved with the rental property business, it does have some drawbacks and these drawbacks are not all financial either. Consider these things before you make your initial rental property.
Four Things To Mull Over Before Becoming A Fulltime Landlord
Consideration 1 - Life Changes As A Landlord
If you possess rental properties, you'll need to decide if you're going to manage them or have someone else do it. If you have one or two properties, you may elect to do it yourself. Just remember that your life is going to change. You'll be on call for everything 24 hours a day, seven days a week. You'll have to handle all sorts of problems such as the heating, air conditioning, leaky roofs, bursting pipes and more. Some complaints will even come overnight. Your renters will have that phone number and you can be sure they will use it.
Consideration 2 - Being A Mean Landlord At Rent Due Time
When you're a landlord, you'll have to be a little mean to get the rent. While most renters hand it over without any issue, it's still the worst task a landlord has to undertake. Many landlords will use a property service management agency to deal with this issue. Keep in mind you will hear the sad tales about why a person doesn't have rent but you still need to collect it. After all, your rental property is your business; if they don't pay, you're stuck on your bills. You may have to start an eviction process.
Consideration 3 - Always Repairing/Fixing Problems In and/or On Rental Property
When you're a landlord, you'll be responsible for the upkeep of the property. Don't ever think you'll find someone who will treat your property as you would. You'll need to repaint the home and replace the carpet, perhaps doing this in between tenants. This is involved work that takes time, which also means your property will stay empty for some time and doesn't bring in money.
Consideration 4 - Property Needs To Be Occupied
When you're a landlord, you'll always need to find someone in your property. When your property stays empty, you don't make any money and are losing money. Make sure your unit is always filled with tenants and find tenants that don't intend to move out in one or two years. A good way to do this is not to overcharge the prospective residents and keep them happy while they are there.
Rental property ownership can be rewarding monetarily; however, there is a lot of work that goes into it, more than people tend to give it credit. Your rental properties are a long-term investment and should always be in working order and profitable. If you wish to try your hand at becoming a landlord but aren't too keen on the four aspects of the job, find a property manager that will do these services for you.
