A Beginner’s Guide To Becoming a Landlord

Private rental prices is something that has been growing pretty steadily over the years. So if you are in the property market or looking to get into it, then this can only be good news. Becoming a landlord can be a nice way to create a passive income, and it is also a pretty clever way to protect your assets. Savings rates have been things that have dropped to a low rate, but house prices can keep rising.

Another reason why becoming a landlord can be a good idea is that it can be a good revenue stream. It has been estimated that private sector landlords earn well and there does continue to be demand for it. Plus, with the rise of renting options like Airbnb, then it does help to create different revenues for creating income. The thing is, though, becoming a landlord is a real commitment, but it can be one that is simple to manage in your spare time. So here are some of the things that you need to be thinking about if you are planning to get into property.

Getting Started and Questions To Ask Yourself

There are some questions that you need to think about when it comes to becoming a landlord. So here are the things that you need to ask yourself:

• Will you rent unfurnished or furnished? This is important to think about as there are good and bad things for both. You can charge more for a furnished property to cover the costs of furniture, but then there are costs associated with the wear and tear of the furniture, as well as the wear and tear on the home. It can be a good idea in student areas, but high-end items probably aren’t the best idea.
• Will you allow pets? This is something that you need to know right from the start, as many people do have pets. Will you allow them? You could charge more if they have one, as there is more risk of things being damaged.
• Is smoking allowed? When you have a home with a smoker, it does become very obvious and can cause damage to the walls, for instance. So you need to know right from the start what you want to do.
• Will you do it all yourself or use a letting agency or management like lelandcherry.com? A letting agency may be something that is an extra expense, but they can take care of a lot of things for you, especially if you want this as a side hustle to generate an income. So it is all things that need to be thought about and considered.

Costs Involved

There are going to be costs involved with property, and there may be more than you had thought of before. But as long as you work out what you would be paying for all of them each month, and the tenants costs cover them, then it will be worth doing. If not, then you might want to think again or choose a property in a cheaper area. Some of the costs to consider are:

• Repairs
• Mortgage repayments
• Insurance
• Legal fees
• Cleaning and servicing costs
• Furniture